Prepare the cash flow statement from the comparative balance sheet of PP Enterprises Ltd shown in   Additional Information on PP Enterprises: During the year 2010, a plant costing INR 1,00,000 was sold off for INR 20,000. Accumulated depreciation on this plant was INR 60,000. Loss on sale of plant was charged to profit and loss account. Taxation paid for year 2009 was INR 120,000. Table […]

A trading firm in northern India wants to prepare a funds flow statement. Prepare a funds flow statement from the information on the trading firm given in Table 3.24 Information on the trading firm for 2009 and 2010 Capital and liabilities 2009 2010 Assets 2009 2010 capital 3,20,000 3,40,000 Land and building 2,00,000 2,00,000 Profit & loss Appropriation account 58,000 98,000 Plant 96,000 1,36,000 Creditors […]

Omega Enterprise Ltd furnishes information regarding its business activities for the financial year 2010 in Prepare the cash flow statement for the company. Table 3.29 Cash account of Omega Enterprise Ltd for the year that ended on March 31, 2010 (INR ‘000) Net profit 1,00,000 Interest paid during the year 44.000 Dividend paid 18,000 Increase in WOI king capital 1,92400 Provision for income tax 14,000 […]

Arihant Ltd is a small listed company and it wants to prepare a cash flow statement. Prepare a cash flow statement from the information provided in Table 3.30 Information on Arihant Ltd Capital and liabilities Assets Capital 4,50,000 4,50,000 Land and building 3,50,000 3,50.000 Profit and loss appropriation Plant 45,000 45000 account 56,000 72.000 Stock 86,000 86.000 (reclaim 44,000 43,000 Debtors 48,000 68,000 Mortgage loan […]

Tata Motors is the India”s largest automobile company. The company in 2008 acquired the Jaguar Land Rover business from Ford Motor Company for USD 2.3 billion cash. The acquisition was completed by June 2008. At the same time, the company launched the Nano—the world”s most economical car priced at INR 100,000. These initiatives resulted in huge cash outflows from the company. The company intended to […]

Suppose Revathi Ltd expects only cash receipts in October from collections of receivables. Cash receipts in October are based on anticipated collections of sales that were made in August and September, and anticipated sales for October, and are projected as shown in The beginning cash balance is INR 67,000. Cash disbursements are anticipated as follows: Material purchases (for September) INR 2,00,000 Manufacturing labour 2,09,000 Manufacturing […]

Limiting factor analysis Triproduct Limited makes and sells three types of electronic security systems for which the following information is available. Standard cost and selling prices per unit Product Day Night Omni scan scan scan (£) (£) (£) Materials 70 110 155 Manufacturing labour 40 55 70 Installation labour 24 32 44 Variable overheads 16 20 28 Selling price 250 320 460 Fixed costs for […]

Increasing competition and inflation have compelled Indian corporations to make more profits by cutting down their operational and production costs. Most of the companies initiated cost cutting measures to enhance their profitability. Take, for example, FMCG giant Hindustan Unilever Ltd (HUL). HUL reported a 20 per cent increase in net profit to INR 3467.3 million in the June quarter of 2001. However, the figure of […]

Price/output and key factor decisions You work as a trainee for a small management consultancy which has been asked to advise a company, Rane Limited, which manufactures and sells a ‘single product. Rane is currently operating at full capacity producing and selling 25 000 units of its product each year. The cost and selling price structure for this level of activity is as follows: At […]

A business in entertainment, Extravaganza, starts a facility where a single ticket is charged at INR 30. The breakup cost per person is given in . The fixed expenses of the Extravaganza total INR 8,000. Calculate the breakeven price for a single ticket that the business must sell Table 5.1 Break-up cost of one ticket Price per ticket INR 30 Less: Variable expenses Dinner INR […]