Академический Документы
Профессиональный Документы
Культура Документы
Assignments
Program: MBA (2 Years) Sem-1
Subject Name Permanent Enrollment Number (PEN) Roll Number (SEN) Student Name Accounting for Managers
INSTRUCTIONS a) Students are required to submit all three assignment sets ASSIGNMENT Assignment A Assignment B Assignment C DETAILS Five Subjective Questions Three Subjective Questions + Case Study 40 Objective Questions MARKS 10 10 10
b) Total weightage given to these assignments is 30%. OR 30 Marks c) All assignments are to be completed as typed in word/pdf. c) All questions are required to be attempted. d) All the three assignments are to be completed by due dates (specified from time to time) and need to be submitted for evaluation by Amity University.
Page 2
Problem 2: From following figures extracted from the books of Mr. XYZ, you are required to prepare a Trading & Profit & Loss Account for the year ended 31st March, 2008 and a Balance Sheet as on that date after making the necessary adjustments.
$ $
Mr. XYZs Capital Mr. XYZ Drawings Plant & Machinery Freehold property Purchases Rtuens outwards Salaries Office Expenses Discount A/c (Dr.) Sundry Debtors Loan to Mr. Krish @10% p.a. Balance on 1.4.2007 Cash at bank Bills payable
228,800 Stock 1.4.2007 13,200 Wages 99,000 Sundry creditors 66,000 Postage & Telegrams 110,000 Insurance 1,100 Gas & fuel 13,200 Bad debts 2,750 Office rent 5,500 Loose tools 29,260 Factory lighting 44,000 Provision for doubtful debts Interest on loan to Mr. Krish 29,260 Cash in hand 5,500 sales
38,500 35,200 44,000 1,540 1,760 2,970 660 2,860 2,900 1,100 880 1,100 2,640 231,440
Page 3
Adjustments: a. Stock on 31st March, 2008 was valued at $ 72,600 b. A new machine was installed during the year costing $15,400 but it is not recorded in the books as on payment was made for it. Wages $ 1,100 paid for its erection has been debited to the wages account. c. Depreciate : 1) Plant & machine by 33.33% 2) Furniture by 10% 3) Freehold property by 6% d. Loose tools were valued at $ 1.760 as on 31.3.2008 e. Of the sundry debtors Rs.660 are bad and should be written off. f. Maintain a provision of 5% on sundry debtors for doubtful debts. g. The manager is entitled to a commission of 10% of the net profits after charging such commission.
Problem 3: Following is the Trial Balance of M/s. Trinity Foods as on 30th June 2007 (after closing Nominal Accounts). Prepare a Balance Sheet on the basis of this trial balance.
Particulars Debit (Rs.) Credit (in Rs.)
Cash Capital Bank Furniture Ram Rahim Trading & Profit & Loss
Problem 4: Given below are the financial statements of Safal Enterprises, using the tool of ratio analysis comment on the profitability and liquidity position of the firm for the year 2006-07. Total no. of shares outstanding for the firm is 2.69crores. In the view of growth opportunities in the near future the firm has been maintaining a policy of 45% payout.
Page 4
Balance Sheet of Safal Enterprises Particulars Assets Fixed assets Current assets Inventory Accounts receivable Cash Less: Current liabilities Net current assets Total Assets Liabilities &owners equity Share capital Reserves & Surplus Debt(long term) Total 31/03/06 31/03/07 (Rs in crores) 31.25 14.56 13.20 1.50 8.55 20.71 51.96 27.00 4.96 20.00 51.96 37.50 16.64 15.43 1.75 11.25 22.57 60.07 27.00 6.36 26.71 60.07
Page 5
Problem 5: Given below are the balance sheets of the two firms- Gloria Ltd and Victoria Ltd as on 31st March 2007.
Gloria Ltd. Assets Cash and Bank balance Marketable securities Sundry debtors Prepaid expenses Stock Current Assets Fixed Assets (Net)
Victoria Ltd.
889.89
26.45 6.44 345.00 512.00 889.89
Can the financial positions of the two firms be compared assuming that the two firms fall in the same industry?
Page 6
Problem 2: The product of a manufacturing concern passes through two processes A and B and then to finished stock. It is ascertained that in process A normally 5% of the total input is scrap which realizes Rs. 80 per tone. From the following information relating to process A for the month of August 2007, prepare process A account Materials Cost of materials Wages Manufacturing overheads Output 500 tonnes Rs. 125 per tonne Rs. 14,000 Rs. 4,000 415 tonnes
Problem 3: Ahmedabad Company Ltd. manufactures and sells four types of products under the brand name Ambience, Luxury, Comfort and Lavish. The sales mix in value comprises the following: Brand name Ambience Luxury Comfort Lavish Percentage 33 1/3 41 2/3 16 2/3 8 1/3 -----100 Copyright @ Amity University Page 7
The total budgeted sales (100%) are $ 600,000 per month. The operating costs are: Ambience Luxury Comfort Lavish 60% of selling price Luxury 68% of selling price Comfort 80% of selling price Lavish 40% of selling price
A) Calculate the breakeven point for the products on an overall basis. b) It has been proposed to change the sales mix as follows, with the sales per month remaining at $. 6,00,000: Brand Name Ambience Luxury Comfort Lavish Percentage 25 40 30 05 --100
Assuming that this proposal is implemented, calculate the new breakeven point.
Page 8
Even more impressive has been the growth in companys operating EBITDA, which increased by 47% to touch Rs 1805 crore during 2005-06. Consequently the operating EBITDA margin grew by 220 basis points to 17.9% of the sales and operating income. Earnings per share have been risen from Rs 75.60 to Rs 111.00 in the current year. Dividend too has grown to Rs 40 per share (400%) for the year ended 31st March 2006 as against Rs 25 per share in 2005. Over the past few years, Bajaj Auto has focused on his technology development, and product development in anticipation of market needs, scaling up its manufacturing facilities, implementing best-in-class production systems, Copyright @ Amity University Page 9
Table B Profit and Loss Account for Bajaj Auto Ltd for the year ended March 2003 March 2004 March 2005 March 2006 9284.84 602.52 50.10 9937.46 8131.87
(Rs in crore) 5721.44 7078.06 507.04 516.41 10.87 -11.57 6239.35 7582.90 5017.92 6286.91
Table C Assets and Liabilities of Bajaj Auto Ltd as on 31 March 2006 Liabilities Net Worth Paid up Equity capital Bonus Equity capital Minority interest Reserves & Surplus Free reserves Mar 05 Mar 06 Rs in crore 4447.16 5349.79 101.18 101.18 114.17 89.46 4256.52 4233.28 114.17 148.79 5099.82 5076.58 Assets Gross fixed assets Capital WIP Less: cumulative depreciation Net fixed Assets Investments Deferred tax assets Copyright @ Amity University Page 10 Mar 05 Mar 06 Rs in crore 2870.02 3092.28 9.14 25.26 1660.32 1205.64 5273.83 9.20 1834.19 1230.77 6865.43 6.43
Notwithstanding its excellent financial performance in the years following its major strategic shift, the management of the firm believes in the philosophy that the quest for perfection is eternal.
To preclude the complacency from setting in, the management not only sets higher standards it also continuously monitors its performance and benchmarks with the industry performance in general and their closest competitors results in particular.
Discuss 1. Is the profitability performance of the firm satisfactory? If not, how can it be improved? 2. How attractive is the firm from the short-term and long-term lenders, perspective? Does the firm appear to be the favorite destination in the automobile sector (two-wheelers and three-wheelers segment) for the lenders? 3. How efficient is the firm been in utilizing the resources at its disposal? How do you think the company can improve upon its efficiency?
Page 11
Page 13