NATIONAL MANAGEMENT COLLEGE – PERUNDURAI
CA INTERMEDIATE
FINANCIAL MANAGEMENT
DATE : 08-10-2023 TOTAL MARK 65
10 MARK
1.Following information and ratios are ratios are given in respect of AQUA Ltd. for the year ended 31st March, 2023:
| Current ratio | 4.0 |
| Acid test ratio | 2.5 |
| Inventory turnover ratio (based on sales) | 6 |
| Average collection period (days) | 70 |
| Earnings per share | ₹ 3.5 |
| Current liabilities | ₹ 3,10,000 |
| Total assets turnover ratio (based on sales) | 0.96 |
| Cash ratio | 0.43 |
| Proprietary ratio | 0.48 |
| Total equity dividend | ₹1,75,000 |
| Equity dividend coverage ratio | 1.60 |
Assume 360 days in a year.
You are required to complete Balance Sheet as on 31st March, 2023.
Balance Sheet as on 31st March, 2023
| Liabilities | ₹ | Assets | ₹ |
| Equity share capital (₹ 10 per share) | XXX | Fixed assets | XXX |
| Reserves & surplus | XXX | Inventory | |
| Long-term debt | XXX | Debtors | XXX |
| Current liabilities | 3,10,000 | Loans & advances | XXX |
| Cash & bank | XXX | ||
| Total | XXX | Total | XXX |
- The following figures are related to the trading activities of M.Ltd.
Total assets – ₹ 10,00,000
Debt to total assets – 50%
Interest cost – 10% per year
Direct Cost – 10 times of the interest cost
Opening Exp. – 1,00,000
The goods are sold to customers at a margin of 50% on the direct cost Tax Rate is 30%
You are required to calculate (i) Net profit margin
(ii) Net operating profit margin
(iii) Return on assets (iv) Return on owner’s equity
- Following information and ratios are given for W Limited for the year ended 31stMarch, 2022:
| Equity Share Capital of ₹ 10 each | ₹ 10 lakhs |
| Reserves & Surplus to shareholders’ Fund | 0.50 |
| Sales / Shareholders’ Fund | 1.50 |
| Current Ratio | 2.50 |
| Debtors Turnover Ratio | 6.00 |
| Stock Velocity | 2 Months |
| Gross Profit Ratio | 20% |
| Net Working Capital Turnover Ratio | 2.50 |
You are required to Calculate :
(i) Shareholders’ Fund
(ii) Stock
(iii) Debtors (iv) Current liabilities
(v) Cash Balance
- Following are the data in respect of ABC Industries for the year ended 31stMarch, 2021 :
Debt to Total assets ratio : 0.40
Long-term debts to equity ratio : 30%
Gross profit margin on sales : 20%
Accounts receivables period : 36 days
Quick ratio : 0.9
Inventory holding period : 55 days
Cost of goods sold : ₹ 64,00,000
| Liabilities | ₹ | Assets | ₹ |
| Equity Share Capital | 20,00,000 | Fixed assets | |
| Reserves & surplus | Inventories | ||
| Long-term debts | Accounts receivable | ||
| Accounts payable | Cash | ||
| Total | 50,00,000 | Total |
Required:
Complete the Balance Sheet of ABC Industries as on 31st March, 2021. All Calculations should be in nearest Rupee. Assume 360 days in a year.
- Masco Limited has furnished the following ratios and information relating to the year ended 31stMarch 2021:
| Sales | ₹ 75,00,000 |
| Return on net worth | 25% |
| Rate of income tax | 50% |
| Share capital to reserves | 6 : 4 |
| Current ratio | 2 : 5 |
| Net profit to sales (After Income Tax) | 6.50% |
| Inventory turnover (based on cost of goods sold) | 12 |
| Cost of goods sold | ₹ 22,50,000 |
| Interest on debentures | ₹ 75,000 |
| Receivables (includes debtors ₹ 1,25,000) | ₹ 2,00,000 |
| Payables | ₹ 2,50,000 |
| Bank Overdraft | ₹ 1,50,000 |
You are required to:
(a) Calculate the operating expenses for the year ended 31st March, 2021.
(b) Prepare a balance sheet as on 31st March in the following format:
| Liabilities | ₹ | Assets | ₹ |
| Share Capital
Reserves and Surplus 15% Debentures Payables Bank Term Loan |
|
Fixed Assets
Current Assets Stock Receivables Cash |
|
- From the following information, complete the Balance Sheet given below:
(i) Equity Share Capital : ₹ 2,00,000
(ii) Total debt to owner’s equity : 0.75
(iii) Total Assets turnover : 2 times
(iv) Inventory turnover : 8 times
(v) Fixed Assets to owner’s equity : 0.60
(vi) Current debt to total debt : 0.40
Balance Sheet of XYZ Co, as on March 31, 2020
| Liabilities | Amount
(₹) |
Assets | Amount
(₹) |
| Equity Shares Capital
Long term Debt Current Debt
|
2,00,000
? ?
|
Fixed Assets
Current Assets : Inventory Cash |
?
? ? |
- Following information relates to RM Co. Ltd ₹ Total Assets employed 10,00,000 Direct Cost 5,50,000 Other Operating Cost 90,000 Goods are sold to the customers at 150% of direct costs. 50% of the assets being financed by borrowed capital at an interest Cost of 8% per annum.
You are required to Calculate : (i) Net profit margin
(ii) Return on Assets
(iii) Assets turnover
(iv) Return on owners’ equity
- Following information has been gathered from the books of Term Ltd. the equity share of which is trading in the stock market at ₹ 14.
| Particulars | Amount (₹) |
| Equity Share Capital (face value ₹ 10 )
10% preference Shares Reserves 10% Debentures Profit before Interest and Tax for the year Interest Profit after Tax for the year |
10,00,000
2,00,000 8,00,000 6,00,000 4,00,000 60,000 2,40,000 |
