Answer
ALL Questions PART A – (5 x 2 = 10 Marks) (III and IV Units)
1.
What is meant by statement of
changes in working capital?
2.
What are the assumptions of Marginal
Costing?
3.
What is Key Factor?
4.
From the following information,
calculate cash from operations:
Funds
from operation 84,000
Increase
in current assets 73,000
Increase
in current liabilities 21,000
Decrease
in current assets 20,000
5.
What is Ratio Analysis? Write its classification?
Answer
ALL QuestionsPART B – (13+ 13+ 8 + 6= 40Marks)
6.
Explain
the Cash Flow & Fund Flow Statements. Discuss the difference between Cash
Flow & Fund Flow Statements.(6 Mark)
7.
Why
Budgetary control important? Discuss about the process and techniques of
Budgetary Control.(8 Marks)
8.
From
the following balance sheets of X Ltd, make out; (i) Statement of changes in
working capital, (ii) Funds Flow statement:(13
Mark)
|
Liabilities
|
2004
|
2005
|
Assets
|
2004
|
2005
|
|
Equity
share capital
|
3,00,000
|
4,00,000
|
Goodwill
|
1,15,000
|
90,000
|
|
Redeemable
preference share capital
|
1,50,000
|
1,00,000
|
Land
and Building
|
2,00,000
|
1,70,000
|
|
General
reserve
|
40,000
|
70,000
|
Plant
|
80,000
|
2,00,000
|
|
Profit
& Loss
|
30,000
|
48,000
|
Debtors
|
1,60,000
|
2,00,000
|
|
Proposed
dividend
|
42,000
|
50,000
|
Stock
|
77,000
|
1,09,000
|
|
Creditors
|
55,000
|
83,000
|
Bills
receivables
|
20,000
|
30,000
|
|
Bills
payable
|
20,000
|
16,000
|
Cash
in hand
|
15,000
|
10,000
|
|
Provision
for tax
|
40,000
|
50,000
|
Cash
at bank
|
10,000
|
8,000
|
|
|
6,77,000
|
8,17,000
|
|
6,77,000
|
8,17,000
|
Additional
information:
a.
Depreciation
of Rs. 10,000 and Rs. 20,000 have been charged on plant, and land and buildings,
respectively in 2005.
b.
A
dividend of Rs. 20,000 has been paid in 2005.
c.
Income
tax of Rs. 35,000 has been paid during 2005.
9. From the following details
prepare the Balance Sheet (7 Mark)
(i)
Stock
Velocity 6 times
(ii)
Debtors
Velocity 2 months
(iii)
Capital
turnover ratio 2 times
(iv)
Creditors
Velocity 73 days
(v)
Fixed
Assets Turnover 4 times
(vi)
Gross
profit Ratio 20%
Gross Profit was Rs. 60000; Reserves &
Surplus amounted to Rs. 20000. Closing stock was Rs 5000 excess of opening
stock.
10. The sales turnover and profit
during two years were as follow (6 Mark)
|
Year
|
Sales (Rs)
|
Profit (Rs)
|
|
2000
|
1,40,000
|
15,000
|
|
2001
|
1,60,000
|
20,000
|
You are required to calculate:
(i)
P/V
Ratio
(ii)
Sales
required to earn a profit of Rs. 40,000
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