B.B.A., Sem.-IV CC-213: Corporate Financial Statements
B.B.A., Sem.-IV CC-213: Corporate Financial Statements
B.B.A., Sem.-IV CC-213: Corporate Financial Statements
: _______________
AM-116
April-2016
B.B.A., Sem.-IV
CC-213 : Corporate Financial Statements
Time : 3 Hours] [Max. Marks : 70
1. The following are the Balance-Sheets of Sneha Ltd. as on 31-3-14 and 31-3-15 : 14
Liability 31-3-14 31-3-15 Asset 31-3-14 31-3-15
Eq. shares of 10,00,000 12,00,000 Land & 10,00,000 12,00,000
` 100 each Building
10% Preference 6,00,000 6,00,000 Machinery 7,00,000 8,00,000
shares of ` 100
each
12% Debentures 2,00,000 2,00,000 Furniture & 3,00,000 4,00,000
Fixtures
General Reserve 1,40,000 2,40,000 Debtors 2,40,000 4,00,000
Profit & Loss a/c 2,60,000 1,60,000 Bills receivable 1,00,000 1,00,000
Bank overdraft 2,00,000 2,60,000 Stock 3,80,000 60,000
Creditors 2,40,000 3,00,000 Cash at Bank 80,000 2,00,000
Bills Payable 1,60,000 2,00,000
28,00,000 31,60,000 28,00,000 31,60,000
Additional Information :
31-3-14 31-3-15
`)
(` `)
(`
Total purchases 12,60,000 19,60,000
Net profit (after interest & tax. Tax rate is 50%) 2,00,000 3,00,000
Credit sales (75% of total sales) 6,00,000 7,20,000
From the above information, calculate the following accounting ratios :
(i) Net profit ratio
(ii) Return on shareholder’s funds
(iii) Return on capital employed
(iv) Capital gearing ratio
(v) Current ratio
(vi) EPS
(vii) Liquid ratio
OR
AM-116 1 P.T.O.
(A) Discuss the utility of ratio analysis. 6
(B) From the following ratios calculated from the accounts of a company & standard
ratios, comment on the financial position and operational efficiency of the
company. 8
Ratios
Actual Standard
(1) Current ratio 4:1 2.25:1
(2) Debtor’s velocity 60 days 90 days
(3) Net profit ratio 14% 20%
(4) Proprietary ratio 50% 60%
5. Do as directed : 14
(1) Mention any one technique used for financial analysis.
(2) Interest coverage ratio = _____ / Interest.
(PAT / PBT / PBIT)
(3) _____ ratio shows leverage position of a business.
(Gross Profit / Debt-Equity / Stock turnover)
(4) Ideal liquid ratio is _____.
(2:1 / 1:1 / 0.5:1)
(5) ICAI has issued accounting standard _____ for preparing interim reports.
(3 / 14 / 25)
(6) Define : ‘Segment Reporting’.
(7) The auditor’s report of a company is prepared by :
(a) Statutory auditor
(b) Audit committee
(c) Internal auditor
(d) Financial manager
(8) Issue of new shares at a premium indicates cash flow from operating activity.
State true or false.
(9) Overseas operations are considered as one of the following segment :
(a) Business
(b) Geographical
(c) Primary Reportable
(d) Secondary Reportable
(10) Increase in stock will _____ the cash flow from operations.
(increase / decrease)
(11) In value added statement, depreciation is part of re-investment in business. State
true or false.
(12) Share-holder’s funds includes debentures. State true or false.
(13) Price-earning ratio = _____ / EPS
(MPS / Shareholder’s funds)
(14) For preparing a common size income statement _____ is taken as base.
(Sales / Total Assets / Cost of Goods sold)
______________
AM-116 4