KAZIAN GLOBAL SCHOOL OF BUSINESS MANAGEMENT

Marks: 80 Course: EMBA Sem-I Note: Attempt all the Question Name: Rinku Gupta Ref. No: - KH-00611-10880

Subject: Finance Management _____________________________________________________________________________

Section A
Attempt all question, each question carried 10 Marks:1. List out the differences between funds flow and cash flow statement. 2. Examine the break-even analysis with suitable examples and workings. 3. Explain the rules and regulations of International Accounting Standards. 4. Write an essay about common size and comparative statements. 5. Bring your attention on classification of budgets with suitable examples.

Section B 1. The comparative Balance Sheets of M/s Ram Brothers for the two years were as follows : Liabilities 31.12.1994 31.12.1995 Rs. Capital 1,50,000 Rs. 1,75,000 Land & Building Assets 31.12.1994 31.12.1995 Rs. 1,10,000 Rs. 1,50,000 Marks-10

Loan from bank Creditors Bills payable Loan from S.B.I.

1,60,000 90,000 50,000 4,50,000

1,00,000 1,00,000 40,000 25,000 4,40,000

Machinery 2,00,000 Stock Debtors Cash 50,000 70,000 20,000 4,50,000

1,40,000 45,000 80,000 25,000 4,40,000

Additional Information : (a) (b) Net Profit for the year 1995 amounted to Rs. 60,000. During the year a machine costing Rs. 25,000 (accumulated depreciation Rs. 10,000) was sold

for Rs. 13,000. The provision for depreciation against machinery as on 31.12.1994 was Rs. 50,000 and on 31.12.1995 Rs. 85,000. You are required to prepare a cash flow statement. 2. The capital of Everest Co. Ltd. is as follows: Particulars Rs. Marks-10

9% Preference shares of Rs. 10 each 3,00,000 Equity shares of Rs. 10 each 8,00,000 11,00,000 The accountant has ascertained the following information : Rs. Profit after tax @ 60% Depreciation Equity dividend paid Reserves Market price per equity share 2,70,000 60,000 20% 77,000 40

Calculate :(a) (b) (c) (d) (e) (f) (g) Dividend yield on equity shares. Cover for performance and equity dividends. Earning per share. The price earnings ratio. Dividend payout ratio. Net cash flow. Book value per share.

3. The following are the balances of Gupta as on 30.6.1998. Particulars Cash in hand Cash at bank Purchases Returns inwards Wages Fuel and Power Carriage on sales Carriage on purchases Stock (1.7.1997) Building Freehold land Machinery Patents Salaries General expenses Insurance Drawings Debtors Sales Returns outwards Rs. 540 2,630 40,675 680 8,480 4,730 3,200 2,040 5,760 32,000 10,000 20,000 7,500 15,000 3,000 600 5,245 14,500 98,780 500

Marks-10

Particulars Capital a/c Creditors Rent

Rs. 62,000 6,300 9,000

Adjustments : (a) (b) (c) (d) (e) (f) Closing stock Rs. 6,800. Machinery is to depreciated by 10% and patents by 20%. Salaries outstanding Rs. 1,500. Insurance includes a premium of Rs. 170 on a policy expiring on 31.12.1998. Further bad debts are Rs. 700. Rent receivable Rs. 1,000. Prepare Trading and Profit and Loss a/c and Balance Sheet.