Matoshri Education Society’s

Matoshri College of Management and Research Centre ,Eklahare, Nashik.

Class- MBA I
FM(202) WRITTEN HOME ASSINGMENT

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Q.1) Describe Meaning and Factors affecting Capital Structure. (CO 1)

Q.2 Compare Traditional Method of Capital Budgeting with Modern Technique (CO 2).

Q.3 From the following Figures and ratios, make Balance Sheet in the following format.(CO 3)

Balance Sheet of ABC Ltd

Liabilities Rs. Assets Rs.

Equity Capital 3,00,000 Fixed Assets 6,00,000
Retained Earnings 2,00,000 Inventory -----------
Debentures 1,25,000 Debtors -----------
Other long-term loans ----------- Cash -----------
Accounts payable 1,00,000
TOTAL ----------- TOTAL -----------
Gross profit margin = 20%
Quick ratio = 1.5:1
Stock turnover ratio = 12 times
Average collection period = 30 days
Total asset turnover = 3 times
Other long-term debts [excluding debentures] to proprietors funds = 0.75:1

Q.4 Compute Working Capital for 60,000 units, selling price is 25/- per unit.(C0 4)

Cost ratios are

Raw materials. 60% of sales
Wages. 10% of sales
Factory Overheads. 10% of sales
Administrative Overheads. 10% of sales
Depreciation 5% of sales
Materials are in stock for two months & finished goods for three months. Materials are
in process for one month requiring full material but 50% of other expenses.Credit
allowed by creditors two months & credit given to customer three months. Wages are
paid in the first week of the next month.
Q5.From the following Balance-sheet of A Ltd., prepare a statement showing sources & application of
funds.(CO 5)

Balance Sheet of A Ltd.

Liabilities 31.3.07 31.3.08 Assets 31.3.07 31.3.08

Share Capital 10,00,000 11,00,000 Goodwill 50,000 40,000
Debentures 5,00,000 3,00,000 Land & Building 4,20,000 6,60,000
General reserve 2,00,000 2,00,000 Plant & Machinery 6,00,000 8,00,000
Profit & Loss A/c 1,10,000 1,90,000 Stocks 2,50,000 2,10,000
Income –tax provision 40,000 1,10,000 Debtors 3,00,000 2,40,000
Creditors 50,000 40,000 Cash 3,00,000 24,000
Bills Payable 20,000 30,000 Preliminary Expenses 30,000 20,000
Provision for Doubtful 30,000 24,000
debts
Total 19,50,000 19,94,000 Total 19,50,000 19,94,000

Additional Information
1) During the year 2007-08,a part of machinery costing Rs.7,500 [accumulated depreciation on that
Rs.2,500] was sold for Rs.3,000.
2) Dividend of Rs.1,00,000 was paid during 2007-08.
3) Income –tax paid during the year 2007-08 Rs. 50,000.
4) Depreciation for the year 2007-08 was provided as under:
Land & Building Rs.10,000.
Plant & Machinery Rs.50,000.
Prepare a funds flow statement.