Cost of sale 19,20,000 Fixed Assets 14, 40,000. MBA Quiz Quiz Revision Quizes, MBA Quiz articles. View Homework Help - Extra Ratio Analysis Questions MBA from FINANCE ea212 at Arab Academy for Science, Technology & Maritime Transport. CBSE issues sample papers every year for students for class 12 board exams. A: Multiple Choice Questions. For instance, the ratio of number of boys in a class to the number of girls is 2:3. Price-earnings ratio. (vii) A. M. cannot be used in the study of ratios, rates etc. At the same time, a higher ratio reflects efficient business activities. Ideal for students preparing for semester exams, MBA, CA, BBA, BMS, PSUs, NET/SET/JRF, UPSC and other entrance exams. 1. That is, high Turnover Ratio and short collection period imply prompt payment on the part of debtors. A STUDY ON RATIO ANALYSIS AT AMARARAJA BATTERIES LIMITED (ARBL) A PROJECT REPORT Submitted in partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Under the Guidance of S.SUJATHA M.B.A., M.Phil ASSISTANT PROFESSOR OF MANAGEMENT STUDIES SRM UNIVERSITY By SUNEEL.R (Reg.No.35080623) DEPARTMENT OF … Days sales in inventory. Account Disable 11. "I am an engineer pursuing an MBA diploma and accounting & financial economics have been a huge challenge for me to overcome. Problem 5: From the following particulars pertaining to Assets and Liabilities of a company calculate : (a) Current Ratio                     (b) Liquidity Ratio                  (c) Proprietary Ratio, (d) Debt-equity Ratio                         (e) Capital Gearing Ratio, Liabilities                                $                                  Assets                                      $, each                                                     500000                        Land & Building                     500000, 8% 2000 pre shares $ 100                                                       Plant & Machinery                  600000, Each                                                    200000                        Debtors                                   200000, 9% 4000 Debentures of                                                          Stock                                       240000, $ 100 each                                           400000                        Cash and Bank                        55000, Reserves                                              300000                        Prepaid expenses                     5000, Creditors                                             150000, Bank overdraft                                    50000, 1600000                                                               1600000, Current Assets = Stock + Cash + Prepaid Expenses + Debtors, = 2,40,000 + 55,000 + 5,000 + 2,00,000 = 5,00,000, Current Liabilities = Creditors + Bank Overdraft, Liquid Ratio = Liquid Assets / Liquid Liabilities, Liquid Liabilities : Creditors   = 1,50,000, Proprietor’s Ratio = Proprietor’s Fund / Total Tangible Assets, Proprietor’s Fund  = Equity Share Capital + Preference, Debt – Equity Ratio = External Equities / Internal Equities, External Equities = Long-term Liabilities + Short-term Liabilities, Capital Gearing Ratio = Fixed Interest Bearing Securities / Equity Share Capital + Reserves, Fixed Interest Bearing Securities = Preference Shares           2,00,000. Report a Violation 10. 1 CHAPTER-I INTRODUCTION 2. It will adversely affect the ability of a firm to meet customers’ demand. It means the firm is not dependent on outside liabilities. QUESTION 2: Accounting analysis (18 marks) 2.1 Provide adjusting journal entries (with amounts) to correct for American Tissue’s improper capitalization of operating expenses in its fiscal year ending September 30, 2000. Copyright 9. Firm A has a Return on Equity (ROE) equal to 24%, while firm B has an ROE of 15% during the same year. With our lesson, Financial Statement Analysis: Definition, Purpose, Elements & Examples, you'll be able to answer that question. A high ratio implies good inventory ‘management and an indication of under-investment. 5% of the sales is net profit and are available for the proprietors. DEFINITION: “The indicate quotient of two mathematical expressions and as “The … However, the Liquid Ratio is 0.65: 1. The average collection period ratio measures the quality of debtors since it indicates the rapidity or slowness of their collectability. Calculate the following ratios from the balance sheet given below : (i) Debt – Equity Ratio                        (ii) Liquidity Ratio, (iii) Fixed Assets to Current Assets    (iv) Fixed Assets Turnover, Liabilities                                $                                  Assets                                      $, Equity shares of $ 10 each      1,00,000                     Goodwill                                             60000, Reserves                                  20,000                         Fixed Assets                                       140000, P.L. Content Guidelines 2. 1.1. Stock Turnover Ratio and Turnover to fixed assets indicate an unhealthy sign. How effectively is the organization using its resources? From the data calculate : (i) Gross Profit Ratio (ii) Net Profit Ratio (iii) Return on Total Assets (iv) Inventory Turnover (v) Working Capital Turnover (vi) Net worth to Debt Sales 25,20,000 Other Current Assets 7,60,000. Candidates must be prepared to apply … The firm can increase the rate of return on investment by increasing production. MBA Finance frequently Asked Questions by expert members with experience in MBA finance . The following is the Balance Sheet of a company as on 31st March: From the following particulars found in the Trading, Profit and Loss Account of A Company Ltd., work out the operation ratio of the business concern: The following is the summarised Profit and Loss Account of Taj Products Ltd. for the year ended 31st December: From the following Balance Sheet and additional information, you are required to calculate: A company has capital of Rs. 4 Calculate the capital gearing from the following information: Rs. Here Get quiz on the Learn Commarce Quiz Quiz of questions that can be used for self-study, homework. Current ratio which let us know the short term solvency of a firm. The collection system is faulty because debtors enjoy a credit facility for 96 days, which is beyond normal period. Financial Analysis Questions, Answers and Examiners’ Comments LEVEL 5 DIPLOMA IN CREDIT MANAGEMENT JANUARY 2013 Instructions to candidates Answer all questions Time allowed: 3 hours The answers to this examination were disappointing. (v) Financiers of Long-term Funds : They are concerned with the firm’s long-term solvency and survival; since they provide long-term funds to firm. online gk on Commarce Quiz MBA and BBA Quiz, Accounting Terms. Bad and doubtful debts and their provisions are not deducted from the total debtors in order to avoid the impression that a larger amount of receivables have been collected. Financial ratio analysis is one of the best tools of performance evaluation of any company. Explain ‘financial modelling’. The state of low return is not desirable. Q1. Image Guidelines 4. for the year                                             8068, To Opening stock                                1378                By Sales                      33984, To Purchase (BD                                 25972              Sales Return                380, To gross profit                                     8068                                                    33604, 35418                                                  35418, Cost of Goods Sold = Cost of Goods Sold / Average Stock, Average Stock = (Opening Stock + Closing Stock)/ 2, (iii) Percentage of Gross Profit to Turnover = Gross Profit / Sales *100. Is faulty because debtors enjoy a credit facility for 96 days, which is beyond normal period, MBA Quiz. Purposes throughout this reading to GENTING LANCO POWER INDIA PRIVATE LIMITED for year. 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