Monday, May 20, 2019

Gauhati University Question Papers: Financial Statement Analysis (Major) (Nov-Dec’ 2017)


2017
FINANCIAL STATEMENT ANALYSIS
(Major)
Full Marks: 80
Time: 3 hours
(The figures in the margin indicate full marks for the questions)
1. Answer the following questions as directed:                                               1x5=5

a)         A cash flow arises when the net result of a transaction results in either increase or decrease in cash or cash equivalents. (State whether the statement is ‘true’ or ‘false’)
b)         Mention one element of Financial Statement.
c)          Liquid ratio is also knows as _______. (Fill in the blank with appropriate word/words).
d)         Which of the following transactions affects the flow of fund?
1)         Conversion of debentures into shares.
2)         Final dividend proposed.
3)         Raising of long-term loan.
e)         Financial Statements are:
1)         Interim reports.
2)         Final reports.
3)         Both of them.  (Select the correct answer)
2. Write the meaning of the following:                                         2x5=10
a)         Quick ratio.
b)         Cash equivalent.
c)          Equity.
d)         Trend analysis.
e)         Liquidity position.
3. Answer the following questions:                                            5x5=25
(a) Mention the characteristics of ideal financial statements.
(b) Prepare a Statement of changes in working capital from the Balance Sheet of a company given below:
Equity and Liabilities
31.3.2016
Rs.
31.3.2017
Rs.
Shareholder’s fund:
Share Capital
Reserves and Surplus:
Statement of Profit and Loss
Non-Current Liabilities:
Bank loan
Current Liabilities and Provisions:
Sundry Creditors
Provision for taxation
Proposed dividend
Interest payable

5,00,000

1,70,000

1,00,000

1,20,000
40,000
40,000
20,000

5,00,000

1,80,000

50,000

1,35,000
55,000
30,000
30,000
Total
9,90,000
9,80,000
Assets

31.3.2016
Rs.
31.3.2017
Rs.
Non –current Assets:
Land and Building (at cost)

Current Assets:
Debtors
Stock in trade
Cash

7,40,000


1,00,000
1,00,000
50,000

7,36,000


1,04,000
1,00,000
40,000
Total
9,90,000
9,80,000

(c) Mention in brief the contents of Board of Director’s Report.
(d) Write a critical note on common-size statement stating its merits and demerits.
Or
From the following, calculate (a) Gross Profit ratio, (b) Operating ratio and (c) Operating profit ratio:                 1+2+2=5

Rs.
Sales
Cost of goods sold
Selling expenses
Administration expenses
Loss on sale of machinery
Interest received on investment
10,00,000
8,00,000
60,000
40,000
2,000
5,000

(e) Explain in brief the distinctions between Fund Flow Statement and Cash Flow Statement.
4. Discuss the objectives and limitations of financial statements.                 5+5=10
Or
What are the constituents of financial statements? Briefly explain each of them.  3+7=10
5. Explain the relevant provisions of Companies Act as regards preparation of financial statements.                                                                                                                                                   10
Or
What is Corporate Annual Report? Mention the mandatory disclosures to be made in Corporate Annual Report.
6. Following are the ratios relating to the activities of XYZ Ltd.:                       2x5=10
Stock velocity
Debtors velocity
Creditors velocity
Gross profit ratio
6 months
3 months
73 days
25%
Gross profit for the year ended 31st March, 2017 amounts to Rs. 4,00,000. Closing inventory of the year is Rs. 10,000 above the opening inventory. Bills Receivable amounts to Rs. 20,000 and Bills Payable amounts to Rs. 10,000. Find out:
1)         Sales.
2)         Purchases.
3)         Sundry debtors.
4)         Sundry creditors.
5)         Closing stock.
Or
Write a note on the importance of ratio analysis to different categories of users of financial statements.                                                                                                       10
7. What is Fund Flow Statement? Describe the procedure that you would adopt in preparing a Fund Flow Statement of a company.                                                           2+8=10
Or
Techno Ltd. provides you the following information for the year ending 31st March, 2017:
1)         Sales for the year: Cash sales Rs. 1,20,000, Credit sales Rs. 80,000.
2)         Collection from debtors amounted to Rs. 60,000.
3)         Payments to creditors of inventory amounted to Rs. 45,000.
4)         Total salary for the period amounted to Rs. 6,000, out of which Rs. 1,000 was outstanding.
5)         Office expenses paid in cash Rs. 8,000.
Outstanding office expenses Rs. 2,000.
6)         Fully paid equity shares of the face value of Rs. 2,00,000 were issued at a premium of 10%.
7)         A machine was sold for Rs. 15,000. The book value of the machine was Rs. 12,000.
8)         A vehicle was purchased for cash at a cost Rs. 1,50,000.
9)         Dividends paid during the year amounts to Rs. 40,000.
10)      Income tax paid Rs. 10,000.
11)      Cash in hand at bank as at 31st March, 2016 Rs. 23,000 and as at 31st March, 2017 Rs. 1,80,000.
Prepare a Cash Flow Statement using direct method.                       10

-000-

No comments:

Post a Comment

Kindly give your valuable feedback to improve this website.

Popular Posts for the Day