NMIMS : Financial Accounting & Analysis

 

Dear students, get fully  solved assignments by professionals

Do send your query at :

help.mbaassignments@gmail.com

 

or call us at :08263069601

 

NMIMS Global Access

School for Continuing Education (NGA-SCE)

 

Course: Financial Accounting & Analysis

 

Internal Assignment Applicable for April 2020 Examination

 

 

Assignment Marks: 30

 

Instructions:

 

·       All Questions carry equal marks.

·       All Questions are compulsory

·       All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3 in not more than 500 words for each subsection. Use relevant examples, illustrations as far aspossible.

·       All answers to be written individually. Discussion and group work is not advisable.

·       Students are free to refer to any books/reference material/website/internet for attempting theirassignments, but are not allowed to copy the matter as it is from the source of reference.

·       Students should write the assignment in their own words. Copying of assignments from otherstudents is not allowed.

·       Students should follow the following parameter for answering the assignment questions.

 

For Theoretical Answer			For Numerical Answer
Assessment Parameter	Weightage		Assessment Parameter	Weightage
Introduction	20%		Understanding and usage of the formula	20%
Concepts and Application related to the question	60%		Procedure / Steps	50%
Conclusion	20%		Correct Answer & Interpretation	30%

 

 

Question. 1. With the given information prepare the statement of Profit and Loss of the company in vertical format.

 

TABLE BELOW

 

Depreciation and amortisation expenses	295600
Purchase of stock in trade	10450
Employees benefit costs	959139
Other expenses	565000
Revenue from sale of product	5000000
Other operating revenues	2500000
Cost of material consumed	1050000
Finance cost	525000

 

Also share your opinion on the statement – “Revenue from operations and earnings before interest, taxes, depreciation and amortization differs from each other”. How?  (10 Marks)

 

Answer: 1.  Statement of profit and loss :

 

Preparation of P&L account

 

(Source: Case study)

 

                   STATEMENT OF PROFIT AND LOSS for the Year ended…

 

 

 

 

 

 

 

 

Ques.2. Cash flow statement is different as it classifies financial information into three major heads which allow the stakeholders in effective decision making. Discuss the broad heads as defined under AS 3 cash flow statement. What can be the potential benefits of preparing a cash flow statement? Elaborate (10 Marks)

 

Answer: Discussion of AS 3 cash flow statement

 

The statement of cash flow can be regarded as a financial metric and a part of the financial statements that are released by an organization that primarily summarizes the number of cash equivalents and cash coming inwards and going outwards of an entity (Nga et al. 2020). The statement of cash flow primarily complements the other two financial metrics of financial statements namely the income statement and balance sheet (Knežević et al. 2018). Cash flow or CF provides the investors and the

 

 

 

 

Question.3. These selected condensed data are taken from a recent balance sheet of Sambhav Realities (Rs in crores)

 

PARTICULARS	AMOUNT
Cash	29.3
Debtors	20.5
Inventory	28.7
Prepaid expenses	24
Outstanding payments	15.5
Trade payables	30.7
Unpaid taxes	25
Loan taken for construction of building for 11 months	50

 

 

 

a.      Discuss about current assets and current liabilities, classify the above into current assets and current liabilities (5 Marks)

 

Answer: STATEMENT OF PROFIT AND LOSS

 

 

Statement of P&L

 

(Source: case study)

 

a. Classification of current liabilities and current assets along with Working capital

 

PARTICULARS	AMOUNT
Current Assets

 

 

 

Question: b. Calculate the working capital and current ratio (5 Marks

 

Answer: Working Capital and Current Ratio

Working capital in the context of financial accounting that primarily represents the liquidity related to operations that is available to an organization or an entity that also includes the government organizations (Pakdel and Ashrafi, 2019). If an organization possesses a positive working capital then it is usually assumed that it must be having the potential to invest and achieve growth. On the other hand, if an organization’s working capital does not surpass the current liabilities then it usually

 

Dear students, get fully  solved assignments by professionals

Do send your query at :

help.mbaassignments@gmail.com

 

or call us at :08263069601