problem 1)a) Compute the gross working capital for the company from the following information.
Particulars Unit cost(Rs.) Raw material
60 Manufacturing expenses
40 Selling, administration and financial expenses
20 Monthly sales level
4000 units Selling price per unit
The durations at different stages of the operating cycle are as follows:
Raw material stage 1 month
Work- in- process stage 2 months
Finished goods stage 1 month
Debtors stage 2 months
problem 2)a) prepare a brief note on
i) Types of Preference Shares
ii) Price Earning Ratio
b) Describe the contents of balance sheet and income statement with appropriate formats.
problem 3)a) Tastewell Bakery has purchased a new kneading machine for Rs.10,000. The machine has an estimate life of 10 years, a zero salvage value and an IRR of 15%. The firm follows straight line method of depreciation. If the cash flows are evenly distributed and the tax rate is 40%, what is the annual PBT on the machine? Also find out the discounted pay back period of the machine if the cost of capital is 10%.
b) Describe different methods of funds flow analysis.