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Working Capital

Financial Management

answered on 03-Oct-20 11:29

Kindly see the link question and answer attached below.. Highlighted one How "*on which Normal GP is 20%*"

latest answer

It is as per given only... Thank you sir...

Subha N

Subha N

CA Inter

4K+

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407

Ratios

Financial Management

answered on 02-Oct-20 23:41

In the practical problem question no.4 , debenture rate is not given, then how did they get 15% ? And also it is not mention 'net profit after tax to sales' ,it is just mention 'net profit to sales', how did they take 'PAT'?

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K thax sir

Swathi Krishna

Swathi Krishna

CA Final

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351

Ratios

Financial Management

answered on 04-Oct-20 18:57

In illustration 2 of the institute's textbook, I found the value of plant and machinery bought, I can't find the reason for my mistake . Can u please check and tell me,where did I go wrong? (In the picture)

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K , thanks sir

Swathi Krishna

Swathi Krishna

CA Final

8K+

6

382

Working capital. Wc of new company in pq Ltd sum

Financial Management

answered on 27-Sep-20 13:39

sir While calculating cost of finished and total cost why did we not deducted depreciation Can you please explain

latest answer

It has not been considered in this problem as only cash costs have to be considered

Sai E

Sai E

CA Foundation

37K+

1

322

Working capital. In cash budget Maya Ltd sum

Financial Management

answered on 24-Sep-20 16:30

While preparing profarma balance sheet while calculating cl stock of inventory we use cost of sales formula in order to get cl stock. But how can cost of sales be payment made to creditors 360 + 600 + 390 ie 1350 I did not understand how sir taken 1350 as cost of sales what is logic behind taking cost of sales as payment made to creditors

latest answer

Thank you sir for detailed explanation

Sai E

Sai E

CA Foundation

37K+

4

305

Working capital management. _ cash budget. Illustration 6 icai material

Financial Management

answered on 24-Sep-20 11:04

Sir here in question it is given as firm had cash balance of 20000 on 1April 2017 but in solution 20000 is taken for all months up to September in begining Rather taking for all months at beginning can we present like this ie after receipts - payments add opening balance of cash 20000 and then less the minimum cash to be maintained . So that April month closing bal of cash becomes opening of may and May's closing becomes opening cash of June Can you explain

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Thank you sir

Sai E

Sai E

CA Foundation

37K+

4

425

Working capital xyz Ltd. Cash cost basis

Financial Management

answered on 25-Sep-20 17:02

Sir while calculation of cost of production including depreciation it is given that sales - gp% = cop But sales - gp%= cost of sales know sir in question admin exp and selling exp are present then how will cost of sales become cop Please explain

latest answer

Sales - Cost of Sales will be operating profit and not gross profit.

Sai E

Sai E

CA Foundation

37K+

3

352

working capital ,Mosaic Ltd sum

Financial Management

answered on 24-Sep-20 06:21

In the question it is given that total cost is 75 percentage of sales and in that 75 % , 80% is vc and 20% is fc. So total cost is 1125000 vc is 900000, fc is 225000 here when we cross check total cost to sales percentage it is 75% ok agreed. But when sales increased to 1750000 vc becomes 1035000 ( ie 80 % of 75 % total cost ). And fc will be same 225000 if we cross check total cost to sales % then percentage is not 75 % it is 72 % why does it occur since we have calculated 1035000 by taking total cost percentage as 75 %

latest answer

Variable cost will remain constant at per unit and % basis. For e.g. Sales are 100 and variable costs are 60. If sales are 200, variable costs will be 120.

Sai E

Sai E

CA Foundation

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6

363

Is this question applicable for CA Final or Inter?

Financial Management

answered on 23-Sep-20 11:54

This question from another institute's study material a friend sent actually appeared in CA Final Strategic Financial Management MTP Oct 16. Is this now in CA Intermediate? If so, kindly help me solve sub divisions b,c,d. Thank you

latest answer

Annual cash flow is given. Using cost of capital sensitivity you can computed cost of capital and then NPV>

Suraj Narayanan

Suraj Narayanan

CA Final

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Capital structure

Financial Management

answered on 14-Sep-20 01:52

How to do this problem

latest answer

Wealth ratio = (dividend + closing market price)/opening market price. Mean should be taken for wealth ratio and then it should be subtracted by 1 to get cost of equity.

Kanaga Mani

Kanaga Mani

CA Inter

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