Question 1: Give a brief description about yourself.

(100 words)

Here, My Name is Amit Kumar Singh I am final year student for BBA at S. S. Jain Subodh
PG Autonomous College, I have completed my 12 th from Jaipur while my 10th from Nepal.
Beside my college and school studies I have evolve various skills and knowledge like Java,
Python, SQL, Smm, Digital marketing etc and currently completing my finance analyst and
business analyst course online. I want my career to be switched to finance side although I am
not totally perfect but I am a quick learner and I love numbers and calculation processes.
Also, I have background of commerce which is more preferable for this role. Therefore, I
applied at your company to enhance my skills.

Question 2: Why do investors find it useful to go through financial statements of

companies while making up the decision of investing in the company or not?? (200
words)

Well, Financial Statements plays a vital role for investors while making up the decisions of
investing in company or not as because the financial statements tells the investor all about the
firm inside details whether the business is profitable, will the business survive in future,
growth rate, annual profit, margins, roi etc. These information can be found in financial
statements. Financial Accounting revolves around 3 statements: P&L, Bal. Sheet, Cash Flow
These all describes all about how did the company perform, What company owes and owns at
certain date, How much cash did the company makes and come from..

Question 3: Why do companies need to focus on availability of cash all the time when it
wants to achieve long term success? (150 words)

As we all know that, Money is the blood of the business every transaction starts and end with
money; The reason why companies need to focus on availability of cash all the time when it
wants to achieve long term success just because long term success relates with the growth
and survival of a business which includes numerous of operations for new goals which
directly and indirectly relates with the finance without finance the work and goal may be
effected and cant meet the requirements which leads to the failure of business. Therefore, It is
necessary for a business to look it after cash availability, these cash availability can be found
in Cash Flow Statement of a company.
Question 4: Calculate the following ratios for the year 2019 and 2018 from the
information given:

a. Net margin Ratio

b. Gross Margin Ratio
c. Debt Equity Ratio’
d. Current Ratio

Financial Information: Page 92 to 94 of

https://www.tescoplc.com/media/476423/tesco_ar_2019.pdf

Answer here:

a.. Net Margin Ratio : net profit/revenue*100

=1303/63911*100

=1.98

b. Gross Margin Ratio : Total revenue – cogs/ total revenue

= 63911 – 59278/63911*100

= 7.2%

c. Debt Equity Ratio : total debt/share holder equity

= 2863/14834

= 0.19

d.. Current ratio: current assest/current liabilities

=12570/20680

= 0.607

Question 5: (Practical)
XYZ Company has an offer to accept a project which requires initial outlay of $100000.
The project will be completed in 4 years and the associated cash inflow will be as Year 1
- $30000, Year 2 – 35000, Year 3 – 40000 and year 4 – 42000.

The project will be disposed off at the end of year 4 with a residual value to be obtained
at $5000. The required rate of return is 10%.

Calculate the net present value of the project and the payback period.