Name NITISHA AGARWAL

Question 1

Write your answer for Part A here. Net income in 2006(e) is 1534, profit from
operating cashflow majorly is almost 88% in 2006€. The three categories
that have contributed majorly to the decrease in the change in cash are 1.
Change in Accounts receivable 2. Investment in PP&E 3. Retirement of
Debt.

Write your answer for Part B here. There is a decreasing trend in operating activities
as the accounts receivable is increasing, decreasing trend in investing activities due to
cash utilized in PP&E, decreasing trend also in financing cash flow as there is increase in
retirement of debt

Write your answer for Part C here. The blue bar extends upwards this means cash flow
from operating activities is positive, the orange bar moves downwards this means the
cash flow from investing activity is negative, the green bar indicate upwards flow this
means cash flow from financing activity is positive and cash at the end is also upwards
trend.
Question 2

Write your answer for Part A here. Paste the excel sheet containing your calculations
here.

YRS 2002 2003 2004 2005 2006E

WC 4930 5416 6416 8345 10199

Write your answer for Part B here. Paste the excel sheet containing your calculations
here.

YRS 2002 2003 2004 2005 2006E

OWC/SR 20 20.21 21.9 23.78 23.94

Write your answer for Part C here. Paste the excel sheet containing your calculations
here.

YRS 2002 2003 2004 2005 2006E

 DIO 46 38 40 34 33

DSO 52 60 85 107 124

DPO 36 50 75 85 98

Write your answer for Part D here. Sale of goods on long credit period means
Accounts Receivable is increased in balance sheet this mean company required more
working capital.

Question 3

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

At December 31 2002 2003 2004 2005 2006E

Capital Employed Amount Amoun Amoun Amount Amount

t t

Plant, Property & 2,257 2,680 2,958 3,617 4,347

Equipment(net)

Other Assets 645 645 645 645 645

 Land 450 1,750 2,853 2,853 2,853

Accounts 3,485 4.405 6,821 10,286 14,471

Receivable

Accounts Payable -2,034 -2,973 -4,899 -6,660 -9,424

Inventories 3,089 2,795 3,201 3,291 3,847

Capital Employed 7,892 9,301 11,578 14,032 16,738

Invested Capital Amount Amoun Amoun Amount Amount

t t

Cash -705 -1,542 -1,181 -2,158 -1,955

Current Position 315 352 525 730 649

of Long-Term
Debt

Long Term Debt 3,024258 4,400 5,726 7.123 8,480

Shareholders’ 5,024 6,091 7,146 8,336 9,563

Equity

Invested Capital 7,8921 9,301 11,578 14,032 16,738

Question 4
Paste the excel sheet containing the final answers for Part A here.

YRS 2002 2003 2004 2005 2006

Net Profit Margin 4.83 4.83 4.37 4.24 3.6

Operating Profit Margin ,6.66 8.72 8.22 8.08 7.09

Ebitda Margin 8.07 10.26 9.77 9.67 8.66

Write your answer for Part B here.

Yrs 2002 2003 2004 2005 2006

Net Income 1,191 1,293 1,279 1,488 1,534

Shareholder 5,024 6,091 7,146 8,336 9,563

’s Equity

ROE 23.70048 21.22843 17.89809 17.84851 16.04121

Write your answer for Part C here.

Yrs 2002 2003 2004 2005 2006

Ebiat 1378 1642 1719 2034 2192

 ACE 8282 9387 11681 14166 16751

RoACE 17 17 15 14 13

Question 5

Write your answer for Part A here. Yes, I will continue the Cares program as the
initiative of expansion of marketing program As we can offer the discounts and schemes
to the distributors.

The con would be like we will be requiring the cost on credit or from the shareholders as
it would increase the training cost increase in expenditure.