1. Mr.

Jayesh after completing his MBA finance form IIM joint a company where his was giving
work project to analyse to flow of cash from operating, investing and financing so as to check
his efficiency. He was also asked to submit report, reflecting whether he is satisfied with the
company’s movement of cash.
Rs.

Operating profit before working capital 300,000

changes
Cash used in investing activities 150,000
Issue of shares for cash 500,000
Loan paid off 100,000

Trade receivable in the beginning of the year were Rs 220,000 and at the end of the year Rs
370,000. Trade payable increased by Rs 35,000 during the year. Outstanding rent during the
year Rs 2500. 3

2. Following Extracted information is provided by DJ Ltd. for preparation of a Common Size

Statement of Profit and Loss:

Particulars Note No. 31.3.2021

Revenue from 800% of Other

Operations Income
Other Income Rs. 400,000

Employee Benefit Expenses 1/8 times of Revenue from

Operation.
Other Expense 1/2 times of Employee Benefit
Expenses

You are required to answer the following questions:

(a) What will be the percentage of Employee Benefit Expenses while preparing Common size
Statement of Profit and Loss.
(b) What will be the percentage of Other Expenses while preparing Common size Statement
of Profit and Loss.
(c) If profit increased from Rs. 60,000 to Rs.115, 000. Comment on the Profit Percentage. 3

3. Following Extracted information is provided by DJ Ltd. for preparation of a Common Size

Statement of Profit and Loss:

Particulars Note 31.3.2021

No.
Revenue from 400% of Other Income
Operations Other Rs. 8,00,000
Income
1/8 times of Revenue from Operation.
Employee Benefit 1/2 times of Employee Benefit Expenses
Expenses Other Expense

You are required to answer the following questions:

1. What will be the percentage of Employee Benefit Expenses while preparing Common size
Statement of Profit and Loss.
 2. What will be the percentage of Other Expenses while preparing Common size Statement
of Profit and Loss.
3. If profit increased from Rs. 30,000 to Rs.55, 000. Comment on the Profit Percentage.

4. Bhavesh,completing his MBA finance form IIM joint a company where his was giving work
project to analyse to flow of cash from operating, investing and financing so as to check his
efficiency. He was also asked to submit report, reflecting whether he is satisfied with the
company’s movement of cash.
Rs.

Operating profit before working capital 6,00,000

changes
Cash used in investing activities 3,00,000
Issue of shares for cash 10,00,000
Loan paid off 2,00,000

Trade receivable in the beginning of the year were Rs 4,40,000 and at the end of the year Rs
7,40,000. Trade payable increased by Rs 70,000 during the year. Outstanding rent during the
year Rs 5,000. 3

5. Following Extracted information is provided by DJ Ltd. for preparation of a Comparative

Balance Sheet
2021 2020

I. EQUITY AND LIABILITIES

1. Shareholder's Funds
(a) Share Capital 25,00,000 20,00,000

2. Non-Current Liabilities
(a) Long-term Borrowings 8,00,000 2,00,000

3. Current Liabilities
Trade Payables 5,00,000 3,00,000
38,00,000 25,00,000
II. ASSETS
Non-Current Assets
(a) Fixed Assets 30,00,000 20,00,000
Current Assets
(a) Trade Receivables 6,00,000 3,50,000
(b) Cash & Cash Equivalents 2,00,000 1,50,000
38,00,000 25,00,000

6. Compute Cash Flow from Operating Activities from the following:

(i) Profit for the year ended 31st March, 2019 is Rs. 10,000 after providing for depreciation
of Rs. 2,000.
(ii) Current Assets and Current Liabilities of the business for the year ended 31st March, 2018 and
2019 are as follows:

31st March 31st March

Particular 2018 2019
 ( Rs.) ( Rs.)
Trade Receivables 14,000 15,000
Provision for Doubtful Debts 1,000 1,200
Trade Payables 13,000 15,000
Inventories 5,000 8,000
Other Current Assets 10,000 12,000
Expenses Payables 1,000 1,500
Prepaid Expenses 2,000 1,000
Accrued Income 3,000 4,000
Income Received in Advance 2,000 1,000

6. Following Extracted information is provided by DJ Ltd. for preparation of a Common Size Balance
Sheet. 3
Particulars 2021

I. EQUITY AND LIABILITIES

1. Shareholder's Funds
(a) Share Capital 25,00,000

2. Non-Current Liabilities
(a) Long-term Borrowings 3,00,000

3. Current Liabilities
Trade Payables 2,00,000
30,00,00
0
II. ASSETS
Non-Current Assets
(b) Fixed Assets 24,00,000
Current Assets
(b) Trade Receivables 3,00,000
(b) Cash & Cash Equivalents 3,00,000
30,00,000

2. Grand Hospitality Ltd., reported Net Profit after Tax of Rs. 6,40,000 for the year ended 31st
March, 2019. The relevant extract from Balance Sheet as at 31st March, 2019 is:

31st March, 31st March,

2019 2018
Particulars (Rs.) ( Rs.)
Inventories 1,15,000 1,25,000
Trade Receivables 1,50,000 1,10,000
Prepaid Expenses 20,000 6,000
Trade Payables 1,10,000 80,000
Provision for Tax 20,000 15,000

Depreciation charged on Plant and Machinery Rs. 55,000, insurance claim received Rs. 50,000, gain
(profit) on sale of investment Rs. 20,000 appeared in the Statement of Profit and Loss for the year
ended 31st March, 2019. Calculate Cash Flow from Operating Activities. 3.