Name Nalini Mudliar

Question 1

Write your answer for Part A here.

Answer: 1A

Investment in PP&E
Investment in Other Assets
Investment in Land

Write your answer for Part B here.

Question 1C:

Self-financing is one of the main sources of funding for a company, together

with capital and credits. Self-financing occurs if the activity is profitable and if a
decision is made not to distribute the profits.

In accounting terms, self-financing corresponds to the net profit after tax, not
distributed, which is found in the liabilities on the balance sheet in terms of reserves
and results recorded.

Self-financing is a particularly strategic source of financing for a company, as it

allows said company to:

• increase its equity and thus its value

• possibly increase its capital by integrating accumulated amounts
• improve most of its financial ratios
• provide the resources that it may freely allocate
• finance its growth, its investments or repay debts, without having recourse
to external funds
 • reduce its dependence on financial backers
• provide a source of its own funds to obtain credit
• promote the profitability of the business model
• improve its credibility in the eyes of third parties and partners

funding of investments

An investment fund is a way of investing money alongside other investors in order to benefit
from the inherent advantages of working as part of a group such as reducing the risks of the
investment by a significant percentage.

An investment fund provides a broader selection of investment

opportunities, greater management expertise, and lower investment
fees than investors might be able to obtain on their own

cash position of the company

A cash position represents the amount of cash that a company, investment fund, or
bank has on its books at a specific point in time. The cash position is a sign of financial
strength and liquidity.

Cash flow is the amount of cash that comes in and goes out of a
company. Businesses take in money from sales as revenues and
spend money on expenses. They may also receive income from
interest, investments, royalties, and licensing agreements and sell
products on credit, expecting to actually receive the cash owed at a late
date.
Question 2

Answer 2A

At December 31 2002 2003 2004 2005 2006E

Accounts Receivable 3,485 4,405 6,821 10,286 14,471
Inventories 3,089 2,795 3,201 3,291 3,847
Accounts Payable 2,034 2,973 4,899 6,660 9,424
Operating Working
Capital=Inventories+Accou
4,540 4,226 5,122 6,917 8,894
nts Recivable- Account
Payable

Question 2B

At December 31 2002 2003 2004 2005 2006E

Operating Working Capital 4,540 4,226 5,122 6,917 8,894
Sales Revenue 24,652 26,797 29,289 35,088 42,597
Operating Working Capital/Sales 18.41 15.77 17.48 19.71 20.87
Revenue % % % % %

Question 2 c:

2002 2003 2004 2005 2006E

Inventories 3,089 2,795 3,201 3,291 3,847
Cost of Goods Sold 20,461 21,706 23,841 28,597 35,100
Cost of Goods Sold per day 56.84 60.29 66.23 79.43 97.5
DpO=AP/COGS Per Day 35.79 49.32 73.97 41.43 39.45

2002 2003 2004 2005 2006E

Accounts Payable 2,034 2,973 4,899 6,660 9,424
Sales Revenue 24,652 26,797 29,289 35,088 42,597
Sales Revenue Per Day 68.47 74.43 81.35 97.46 118.3
DSo=AP/Sales Per Day 29.7 39.94 60.22 68.33 79.66
 2002 2003 2004 2005 2006E
Inventories 3,089 2,795 3,201 3,291 3,847
Cost of Goods Sold 20,461 21,706 23,841 28,597 35,100
Dio=AP/COGS Per Day 35.79 49.32 73.97 41.43 39.45

Answer 2D:

Question 3

Write your answer for Part A here. Also, paste the economical balance sheet prepared by
you here.

Question 4

Paste the excel sheet containing the final answers for Part A here.

Write your answer for Part B here.

Write your answer for Part C here.

Question 5

Advantages:

Approximately it might cost Rs.100-150/sft. But it depends on various

other factors too which are listed below

1. The type of plants you are going to grow

2. The type of containers you are choosing to grow your plants i.e.
grow bags, pots, plastic cans etc.
3. The type of watering system you are going to use, is it going to be
manual or automated
4. Type of surface, if the building is new the terrace would be in
good condition it doesn’t need to be waterproofed if it’s an old
building it needs to be waterproofed.

Disadvantages of terrace gardening

• There are very little disadvantages in terrace gardening when
compared with the advantages however there are some
challenges in setting up a terrace garden. Some of them are
listed below
1. The terrace has to be properly waterproofed before setting up
the terrace garden or else there may be leaks in the roof
2. If there is no proper slope provided in the terrace the water may
be stagnant in between the plants during rains
3. The wind speed will be high in the terrace when compared with
the ground level, hence proper protection must be given to the
plants to prevent it from getting damaged.
4. Frequent maintenance and cleaning might be required as there
will be shedding of dry leaves.
5. There are high chances of pests and insects to be present in the
terrace garden which might require frequent attention