SOLVED ASSIGNMENT, MBA (For 2018-19 Session)
MS-04 Accounting and Finance for Managers SOLVED ASSIGNMENT
Course Code : MS-04
Course Title : Accounting and Finance for Managers
Assignment Code : MS-04/TMA/SEM-I/2018
Coverage : All Blocks
1. How is ‘Financial Accounting’ different form ‘Management Accounting’? Discuss the role
and activities of an Accountant.
2. The Balance Sheets of XYZ Ltd as on 31st December, 2016 and 2017 are as given below:
Liabilities 2016 2017 Assets 2016 2017
Share Capital 2,00,000 2,00,000 Goodwill 24,000 24,000
28,000 36,000 Buildings 80,000 72,000
Profit and Loss
32,000 26,000 Plant 74,000 72,000
Creditors 16,000 10,800 Investments 20,000 22,000
Bills Payable 2,400 1,600 Stock 60,000 46,800
32,000 36,000 Bills
800 1,200 Debtors 36,000 38,000
Cash and bank
3,11,200 3,11,600 3,11,200 3,11,600
(i) Depreciation provided on plant was 8,000 and on building was Rs. 8,000.
(ii) Provision for taxation made during the year is Rs. 38,000.
(iii) Interim dividend paid during the year is Rs. 16,000.
From the above information, you are required to prepare Schedule of changes in Working
Capital and Funds Flow Statement.
3. What do you understand by CVP Analysis. Explain the effect of Price and Volume on the
Net Profit, with the help of a suitable illustration.
4. The Management of ABC Ltd. is considering a proposal to purchase an improved model
of a machine which gives increased output. Its existing machine which has been in
operation for 2 years has current market value of Rs. 1,00,000, its remaining estimated
useful life is 10 years, with no salvage value at the end.
The relevant particulars are as follows:
Existing Machine New Machine
Purchase price Rs. 2,40,000 Rs. 4,00,000
Estimated life 12 years 10 years
Salvage value – –
Annual Operating hours 2,000 2,000
Selling price per unit Rs. 10 Rs. 10
Output per hour 15 units 20 units
Material cost per unit Rs. 2 Rs. 2
Labour cost per unit 20 40
Consumable stores per year 2,000 5,000
Repairs and Maintenance per
Working Capital 25,000 40,000
The company follows the straight-line method of depreciation and is subject to 50% tax.
Should the existing machine be replaced? Assume that the company’s required rate of
return is 15% and that the loss on sale of Assets is tax deductible.
5. As a Finance Manager how would you determine the Optimal Cash balance that would be
required by your Organisation? What measures you would take to ensure the smooth and
efficient Management of Cashflows in the Orgnisation?