You being the account’s manager of JVP Ltd in the online grocery business

MBA Assignment
Solutions | Project Report & Thesis | Contact: Prakash | Call @
+919741410271 / +918722788493 or Email: smu.assignment@gmail.com

FINANCIAL ACCOUNTING & ANALYSIS

Question 1

Calculate Net cash flow
from operating activities and discuss how here the non-cash item and the
non-operating items are to be treated

·         Net profit for the year 155000

·         One of the machinery whose opening written down
value is 120000/- depreciation charged on the same Rs 15000 is sold at the
year-end for Rs 95000.Loss on sale of machinery included in above.

·         Interest received included in above Rs2000

·         The opening balances of stock is Rs 50000/- and
the closing is Rs 55000/-

·         The opening balances of creditors is Rs 75000/-
and the closing is Rs 90000/-

Question 2

You being the account’s
manager of JVP Ltd in the online grocery business. The account executive
recognizes the income arising from lease rentals on the basis of accounting
standard -9 which talks about revenue recognition.

You have a difference of
opinion with him as this Accounting standard is not applicable to income
arising from lease agreement and other income mentioned there. How will you
make him understand what exactly AS-9 talks about?

Question 3

From the following
information

Liabilities	Amount	Assets	Amount
Equity share Capital	225000	Fixed assets  (net depreciation)	226000
Reserves & Surplus	105000	Stock	48000
Bank Over draft	115000	Debtors	72000
Creditors	55000	Bank	154000
Total	500000	Total	500000

Calculate –

a. Cash ratio and
interpret the results.

b. Interpret how quick
ratio is different from current ratio if computed in the above scenario.

MBA Assignment
Solutions | Project Report & Thesis | Contact: Prakash | Call @
+919741410271 / +918722788493 or Email: smu.assignment@gmail.com