What is ‘Capital Structure’? Explain the features of an appropriate capital structure and discuss factors determining capital structure of a firm.
See Answer →What are the various types of investment proposals? Explain the various discounted cash flow techniques used to evaluate investment proposals.
See Answer →The Colour Flow Ltd’s income statement for the preceding year is presented below. Except as noted, the cost/revenue relationship for the coming year is expected to follow the same pattern as in the preceding year. Income statement for the year ending March 31 is as follows:
| Sales (20,000 bottles @ R. 25 each) | R 5,00,000 | |
| Variable costs | R 3,00,000 | |
| Fixed costs | 1,00,000 | 4,00,000 |
| Pre-tax profit | 1,00,000 | |
| Less: Taxes (0.35) | 35,000 | |
| Profit after tax | 65,000 |
Profit after tax 65,000
1. What is the break-even point in amount and units?
2. Suppose that a plant expansion will add R 50,000 to fixed costs and increase capacity by 60 per cent. How many bottles would have to be sold after the addition to break-even?
3. At what level of sales will be company be able to maintain its present pre-tax profit position even after expansion?
4. The company’s management feels that is should earn at least R 10,000 (pre-tax per annum) on the new investment. What sales volume is required to enable the company to maintain existing profits and earn the minimum required return on
new investments?
5. Suppose the plant operates at full capacity after the expansion, what profit after tax will be earned?
Compute cash generated from Operations during the year 2021-22, from the following data:
| Particulars | April 1, 2021 | March 31, 2022 | ||
| Sundry debtors | R. 30,000 | R. 40,000 | ||
| Sundry creditors | 48,000 | 30,000 | ||
| Outstanding expenses | 3,000 | 6,000 | ||
| Outstanding income | 1,000 | 1,000 | ||
| Stock in trade | 55,000 | 60,000 | ||
| Prepaid expenses | 3,000 | 2,000 | ||
| Accumulated depreciation | ||||
| (no retirements during the year) | 50,000 | 60,000 | ||
| Provision for doubtful accounts | 1,500 | 2,000 | ||
| Dividends payable | -- | 3,000 | ||
| Bills receivable | 10,000 | 12,000 | ||
| Bills payable | 8,000 | 6,000 | ||
| Net income before taxes (as per profit | and loss | -- | 80,000 | |
Explain the following Accounting concepts
a) Business entity concept
b) Accrual concept
c) Money measurement concept
d) Periodicity concept
See Answer →
Role of Government
See Answer →Importance of Balance of Payments
See Answer →Economic Development
See Answer →Public Sector in the present scenario
See Answer →Examine the impact of economic reforms on growth rate of GDP and FDI.
See Answer →What reforms have taken place in the small scale sector? Discuss with examples.
See Answer →Briefly discuss the significance and need for financial reforms.
See Answer →Discuss the merits and demerits of currency convertibility for a developing economy
See Answer →What is the rationale for private sector development? Critically examine the problems and prospects of privatization.
See Answer →Discuss the relationship between economic and non-economic factors with the help of interaction matrix, giving examples.
See Answer →Examine the interaction between Economic Environment and Business Management.
See Answer →Explain the determinants of Interpersonal Behaviour. Identify the skills required for developing interpersonal relationship to be an effective Manager.
See Answer →How does ‘controlling’ play as an important function in an organisation? Explain the strategies to be used by organisation to exercise control, with examples.
See Answer →Describe and discuss the factors influencing the choice of structure in an organisation. Explain how organizational structure can be integrated with organizational objectives with examples.
See Answer →Briefly describe the evolution and need of ‘Management by Objectives’ (MBO) and it’s process. Discuss the benefits of MBO and how effectively it can be implemented in an organisation, citing examples.
See Answer →