SAMBHRAM INSTITUTE OF TECHNOLOGY, BANGALORE

Department of Management Studies and Research

MBA I Sem -III Internal Exams, December, 2014
Subject
: Accounting for Manaers
mns
Subject Code
: 14MBA13
1.
2.
1.

2.

Time : 1:15
Marks: 30

Part A (3 Marks)
Answer any one question
Infosys Ltd has a current ratio of 2.5 & liquid ratio of 1.5. If working capital is Rs. 1,00,000
Ascertain current assets and inventory.
Current ratio is 3.75 Acid test ratio is 1.25, stock Rs.3,75,000 calculate working capital.
Part B (7 Marks)
Answer any one question
From the following information find out as many as ratios?
Current ratio =2.5
Quick ratio
=1.5
Net working capital
= 3,00,000
Stock turnover ratio
= 6 times
(COGS/Closing stock)
Gross Profit Ratio
=20%
Total Assets turnover ratio = 2 times
Debtors turnover ratio = 2 months
From the following profit and loss account of Sadiq Company Ltd., for the year ended 2003 and
2004, you are required to prepare a comparative income statement.
Particulars
2003
2004
Particulars
2003
2004
To Cost of goods
6,00,000
7,50,000
By Net sales
8,00,000
10,00,000
sold
To Operating Exp:
20,000
20,000
Admn
Selling
30,000
40,000
To Net Profit

1,50,000
1,90,000
8,00,000
8,00,000
Part C (10 Marks)

8,00,000

8,00,000

Answer the following Question:What is Funds flow statement? How do you differentiate the cash flow statement and funds flow
statement? Limitations of Cash flow statement?

Part-D (10 Marks)

Answer the following question
Answer the following question
Liabilities
2010
2011
Assets
Share capital
2,00,000
2,50,000
Land &
Buildings
General
50,000
60,000
Machinery
Reserve
Profit & Loss 30,500
30,600
Stock
A/c
Bank Loan
70,000
---Sundry debtors
(Long Term)
Sundry
1,50,000
1,35,200
Cash
Creditors
Provision for
30,000
35,000
Bank Balance
Taxation
Good will
Total:
5,30,000
5,10,800
Total

2010
2,00,000

2011
1,90,000

1,50,000

1,69,000

1,00,000

74,000

80,000

64,200

500

600

-----

600

---5,30,500

5,000
5,10,800

Additional information: During the year ended 31-03-2011:

1.Dividend of 23,000 was paid.
2. Assets of another company were purchased for a consideration of 50,000 payable in shares. The assets
purchased were stock 20,000, Machinery Rs.25,000
3. Machinery was further purchased for Rs.8,000
4. Depreciation written off machinery Rs.12,000
5.Income tax provided during the year Rs.33,000
6. Loss on sale of machinery Rs.200 was written off to general reserve.
Prepare cash flow statement.