NMIMS Global Access
School for Continuing Education (NGA-SCE)
Course: Financial Accounting & Analysis
Internal Assignment Applicable for April 2022 Examination
1. Analyse the
following transactions for Surprise Ltd. using the concept of Accounting
Equation comprising of Assets, Liabilities and Equity
1.Commenced business
with cash of ₹ 5,00,000.
2. Purchased equipment for cash ₹ 2,00,000.
3. Purchased furniture
worth ₹50,000 on credit from IndiMart.
4. Purchased raw
materials for ₹25,000 against cash from XYZ Suppliers.
5. Deposited cash of ₹
1,25,000 in the current account.
6. Sold goods for
₹75,000 and received a cheque against the same. (10 Marks)
2. Cash flow statement
complements the income statement and the balance sheet summarizing all cash
inflows and outflow transactions in the company within the given financial
year. However, there are two different methods of preparing the cash flow
statement – direct and indirect. Enlist the differences between Direct and
Indirect method of cash flow statement. (10 Marks)
3. Following information
is available for Companies Ace Ltd. and Pace Ltd.: (₹ in lacs)
|
Particulars |
Ace Ltd. |
Pace Ltd. |
|
Long term Debt |
625 |
700 |
|
Equity |
2100 |
2850 |
|
Current assets |
450 |
550 |
|
Current liabilities |
300 |
375 |
|
Net Profit |
115 |
178 |
|
Revenue (net) |
355 |
452 |
a. Compute Debt-equity
ratio, current ratio for both companies. (5 Marks)
b. If face value of
equity shares of both companies ₹10 each, calculate the Earnings per share
ratio for both companies, advising which company is recommended for investment.
(5 Marks)
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