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Rakshpal Bahadur Management Institute, Greater Noida

PaperCode: MB-103

MBA -1st Semester

Second Sessional Examination 2012

Accounting and Financial Analysis

Time: 90 minutes M.M: 30

Note: (1) Attempt all Questions

(2) Marks are indicated against questions

Section A

Attempt all the questions. Answers will be confined to 50-70 words (6*1=6)

Q 1.Define ratio.Q 2.If a firm has $100 in inventories, a current ratio equal to 1.2, and a quick ratio equal to 1.1, what is the

firm's Net Working Capital?Q 3.Describe accounting Equation.Q 4.The current ratio of Bicon Ltd. is 4.5:1 and liquidity ratio is 3:1 stock is Rs. 6,00,000 Find out the

current liabilities.

Q 5.What are the need and causes of depreciation?Q 6.Explain the debt-equity ratio.Section B

Q 7. compulsory. (5)

The following is the trading and profit and loss account of a concern for the year ending Dec.31,2008

Particulars Rs. Particulars Rs.

To opening stock 76,250 By Sales 5,00,000

To purchases 3,15,250 By closing stock 98,500

To factory expenses 7,000To Gross profit c/d 2,00,000

5,98,500 5,98,500

To administrative expenses 1,01,000 By Gross profit b/d 2,00,000

To selling and distribution 12,000 By non-operating income 6,000

To non-operating expenses 9,000

To Net profit 84,000

2,06,000 2,06,000

You are required to calculate: (a) Expenses ratio, (b) Gross profit ratio, (c) operating ratio, (d) Net profit ratio.(e) operating profit ratio.

(Roll No to be filled in your question paper also)

ROLL NO:_______

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Attempt any 2 questions from the rest. Answers will be confined to 100-200 word (2*2=4)

Q 8.Explain debt-equity ratio.

Q 9. Current ratio 2.8, liquid ratio 1.5,working capital 1,62,000. Find out current assets, currentliabilities and liquid assets.

Q 10. Define EPS.

Section C

Attempt all the questions. Answers will be confined to 300-500 words (3*5=15)

Q 11. What is Depreciation? Explain any two methods of depreciation with example.

OR

What do you understand by the analysis and interpretation of Financial Statement? Discuss their utility tothe management.

Q 12. What are the factors to be taken into consideration in selecting a depreciation method?OR

Q 13. A from the following information calculate and comment upon:

(i) Gross profit ratio (ii) Current ratio (iii) Debt-equity Ratio(iv) acid test rati

(v) stock turnover ratioNet sales Rs. 30000/- cost of goods sold Rs.20000/-net profit RS. 3000/-Current assets Rs.6000/- current liabilities Rs. 2000/- stock Rs. 1000/-Share capital Rs. 5000/- Debenture Rs. 8000/-

OR

A company, whose accounting year is the calendar year, purchased on 1st April, 2006, machinery costing Rs.

30,000. It purchased further machinery on 1st October, 2006 , costing Rs. 20,000 and on 1st July,2007, costing

Rs. 10,000.

On 1st Junary, 2008 One-third of the machinery which was installed on 1st April, 2006 became obsolete and

was sold for Rs.3, 000.

Show how the machinery account would appear in the books of the company, given that machinery wasdepreciated by fixed installment at 10% per annum.

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