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    MAA Gradable Assignment - MGT402

    Uploaded by

    Manu Rajanna

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    © All Rights Reserved
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    MAA Gradable Assignment - MGT402

    Uploaded by

    Manu Rajanna
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    3 views3 pages

    MAA Gradable Assignment - MGT402

    Uploaded by

    Manu Rajanna

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Assignment Questions – MAA – MGT402

    Problem 1 (10 marks)


    Journalize the following transactions of M/s.Bharat Fashion House and post the entries to
    the Ledger:
    2018
    June 05 Business started with cash Rs.2,00,000
    June 08 Opened a bank account with Syndicate Bank Rs.80,000
    June 12 Goods purchased on credit from M/s.Gulmohar Fashion House Rs.30,000
    June 12 Purchase office machines, paid by cheque Rs.20,000
    June 18 Rent paid by cheque Rs.5,000
    June 20 Sale of goods on credit to M/s.Mohit Bros Rs.10,000
    June 22 Cash sales Rs.15,000
    June 25 Cash paid to M/s.Gulmohar Fashion House Rs.30,000
    June 28 Received a cheque from M/s.Mohit Bros Rs.10,000
    June 30 Salary paid in cash Rs.6,000

    Problem 2 (5 marks)
    Prepare accounting equation and balance sheet on the basis of the following:
    i. Pandiyan started business with cash Rs.1,50,000
    ii. He purchased furniture Rs.50,000
    iii. He paid rent Rs.20,000
    iv. He purchased goods on credit from Mr.Mahesh Rs.45,000
    v. He sold goods (cost price Rs.70,000) for cash Rs.75,000

    Problem 3 (10 marks)


    Hitech Ltd. acquired a machine on 1st October 2015 at a cost of Rs.50,00,000. It charges
    depreciation on straight line method at the rate of 10% every year. The company purchased
    a new machine worth Rs.10,00,000 on 1st April 2017. Show the Machinery Account and
    Depreciation Account for the year ending 31st March 2016, 2017 and 2018.

    Problem 4 (15 marks)


    The following are the key Financial Ratios of Reliance Industries Ltd for the year 2016, 2017
    and 2018. Analyze the different ratios and give suitable relevant interpretations for each
    category of ratios.
    March March March
    Ratios
    2018 2017 2016
    Investment Valuation Ratios
    Face Value 10 10 10
    Dividend Per Share 6 11 10.5
    Operating Profit Per Share
    81.68 133.04 123.87
    (Rs)
    Net Operating Profit Per
    457.87 743.68 719.54
    Share (Rs)
    Free Reserves Per Share (Rs) -- -- --
    Bonus in Equity Capital 81.9 64.85 65.07
    Profitability Ratios
    Operating Profit Margin(%) 17.83 17.88 17.21
    Profit Before Interest And
    14.13 13.88 12.69
    Tax Margin(%)
    Gross Profit Margin(%) 14.53 14.38 13.11
    Cash Profit Margin(%) 14.48 15.92 15.36
    Adjusted Cash Margin(%) 14.48 15.92 15.36
    Net Profit Margin(%) 11.58 12.99 11.75
    Adjusted Net Profit
    11.26 12.54 11.38
    Margin(%)
    Return On Capital
    12.24 11.16 11.47
    Employed(%)
    Return On Net Worth(%) 10.68 10.89 11.41
    Adjusted Return on Net
    10.68 10.89 11.41
    Worth(%)
    Return on Assets Excluding
    496.68 886.76 741.2
    Revaluations
    Return on Assets Including
    496.68 886.76 741.2
    Revaluations
    Return on Long Term
    12.71 11.85 11.99
    Funds(%)
    Liquidity And Solvency Ratios
    Current Ratio 0.41 0.35 0.47
    Quick Ratio 0.25 0.21 0.31
    Debt Equity Ratio 0.31 0.35 0.38
    Long Term Debt Equity Ratio 0.26 0.27 0.32
    Debt Coverage Ratios
    Interest Cover 10.82 15.98 15.55
    Total Debt to Owners Fund 0.31 0.35 0.38
    Financial Charges Coverage
    12.88 19.08 19.45
    Ratio
    Financial Charges Coverage
    10.28 15.65 16.07
    Ratio Post Tax
    Management Efficiency Ratios
    Inventory Turnover Ratio 7.72 7.79 8.96
    Debtors Turnover Ratio 36.41 53.93 57.17
    Investments Turnover Ratio 7.72 7.79 8.96
    Fixed Assets Turnover Ratio 0.95 0.96 1.23
    Total Assets Turnover Ratio 0.72 0.64 1.26
    Asset Turnover Ratio 0.72 0.67 0.73

    Average Raw Material


    -- -- --
    Holding
    Average Finished Goods
    -- -- --
    Held
    Number of Days In Working
    -131.04 -114.43 -71.1
    Capital
    Profit & Loss Account Ratios
    Material Cost Composition 72.63 72.14 69.38
    Imported Composition of
    -- -- 91.71
    Raw Materials Consumed
    Selling Distribution Cost
    -- -- 3.54
    Composition
    Expenses as Composition of
    58.53 -- 59.11
    Total Sales
    Cash Flow Indicator Ratios
    Dividend Payout Ratio Net
    9.68 -- 11.28
    Profit
    Dividend Payout Ratio Cash
    7.53 -- 8.36
    Profit
    Earning Retention Ratio 90.32 100 88.72
    Cash Earning Retention Ratio 92.47 100 91.64
    AdjustedCash Flow Times 2.24 2.54 2.5

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