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8 views

Mba Answers

Uploaded by

itsmedhirendragupta
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 4

Section A question 2 ka or

1. Current Ratio:
o The current ratio is given as 4.5:1.
o Current Ratio = Current Assets / Current Liabilities
o Let’s assume current liabilities as “L.”
o Current Assets = 4.5L
2. Acid Test Ratio (Quick Ratio):
o The acid test ratio is given as 3:1.
o Acid Test Ratio = (Current Assets - Inventory) / Current Liabilities
o Given inventory = Rs. 12,000
o Current Assets - 12,000 = 3L
o Current Assets = 3L + 12,000
3. Equating Current Assets:
o Since both ratios refer to the same current assets, we can equate
them:
 4.5L = 3L + 12,000
 1.5L = 12,000
 L = 8,000
4. Current Liabilities:
o Current Liabilities = L = Rs. 8,000

Therefore, the current liabilities for X Ltd. are Rs. 8,000.

Section B question 6 or
1. P/V Ratio (Profit-Volume Ratio):
o P/V Ratio = (Profit / Sales) × 100
o For 2022-23:
 Profit = Rs. 5000
 Sales = Rs. 75,000
 P/V Ratio = (5000 / 75000) × 100 = 6.67%
2. Fixed Cost for 2022-23:
o Fixed Cost = Total Cost - Variable Cost
o Since we have only profit information, we can calculate the variable
cost:
 Variable Cost = Total Cost - Profit
 Variable Cost = 75000 - 5000 = Rs. 70,000
o Fixed Cost = Total Cost - Variable Cost
 Fixed Cost = 75000 - 70000 = Rs. 5000
3. Margin of Safety:
o Margin of Safety = (Actual Sales - Break-Even Sales) / Actual Sales ×
100
o Break-Even Sales = Fixed Cost / P/V Ratio
 Break-Even Sales = 5000 / (6.67/100) = Rs. 75,000
o Margin of Safety = (75000 - 10000) / 75000 × 100 = 86.67%
4. Break-Even Point (B.E.P.) for Sales of Rs. 10,000:
o B.E.P. = Fixed Cost / P/V Ratio
 B.E.P. = 5000 / (6.67/100) = Rs. 75,000

Remember to double-check the calculations, and feel free to ask if you need further
clarification! 😊

Question 7
1. Gross Profit Ratio:
o Gross Profit = Sales - Cost of Sales
o Gross Profit Ratio = (Gross Profit / Sales) × 100
o Gross Profit = Rs 2,52,000 - Rs 1,92,000 = Rs 60,000
o Gross Profit Ratio = (60,000 / 2,52,000) × 100 = 23.81%
2. Net Profit Ratio:
o Net Profit = Gross Profit - Other Expenses
o Net Profit Ratio = (Net Profit / Sales) × 100
o Net Profit = Rs 36,000
o Net Profit Ratio = (36,000 / 2,52,000) × 100 = 14.29%
3. Current Ratio:
o Current Assets = Other Current Assets + Closing Stock
o Current Liabilities = Current Liabilities
o Current Ratio = (Current Assets / Current Liabilities)
o Current Assets = Rs 76,000 + Rs 50,000 = Rs 1,26,000
o Current Liabilities = Rs 60,000
o Current Ratio = 1,26,000 / 60,000 = 2.1
4. Liquid Ratio:
o Liquid Assets = Current Assets - Closing Stock
o Liquid Ratio = (Liquid Assets / Current Liabilities)
o Liquid Assets = Rs 1,26,000 - Rs 50,000 = Rs 76,000
o Liquid Ratio = 76,000 / 60,000 = 1.27

Question 8 or

Based on the information provided in the image, here’s how you can calculate the cost of
capital for the debentures:

1. Calculate the net proceeds from the issue of debentures:


o Total face value of debentures = 100 * Rs 100 = Rs 10,000
o Underwriting commission = 1.5% of Rs 10,000 = Rs 150
o Brokerage = 0.5% of Rs 10,000 = Rs 50
o Printing and other expenses = Rs 500
o Total expenses = Rs 150 + Rs 50 + Rs 500 = Rs 700
o Net proceeds = Total face value - Total expenses
o Net proceeds = Rs 10,000 - Rs 700 = Rs 9,300
2. Calculate the cost of debt before tax:
o Annual interest payment = 7% of Rs 10,000 = Rs 700
o Cost of debt before tax = (Annual interest payment / Net proceeds) * 100
o Cost of debt before tax = (Rs 700 / Rs 9,300) * 100 ≈ 7.53%
3. Calculate the cost of debt after tax (since interest expense is tax-deductible):
o Tax rate = 50%
o Cost of debt after tax = Cost of debt before tax * (1 - Tax rate)
o Cost of debt after tax = 7.53% * (1 - 0.50)
o Cost of debt after tax ≈ 3.77%

Therefore, the cost of capital for the debentures is approximately 3.77% after considering the
tax shield on interest payments.

If you have any further questions or need additional assistance with another topic or question,
feel free to ask! 😊
Question 4 section a

To calculate the operating leverage, we’ll use the following formula:

Operating Leverage = Contribution Margin / Operating Income

Where:

 Contribution Margin = Sales - Variable Costs


 Operating Income = Contribution Margin - Fixed Costs

Given:

 Sales = Rs. 6,00,000


 Variable Costs = Rs. 4,00,000
 Fixed Costs = Rs. 1,50,000

First, we calculate the Contribution Margin: Contribution Margin = Rs. 6,00,000 - Rs.
4,00,000 Contribution Margin = Rs. 2,00,000

Next, we calculate the Operating Income: Operating Income = Contribution Margin - Fixed
Costs Operating Income = Rs. 2,00,000 - Rs. 1,50,000 Operating Income = Rs. 50,000

Finally, we find the Operating Leverage: Operating Leverage = Contribution Margin /


Operating Income Operating Leverage = Rs. 2,00,000 / Rs. 50,000 Operating Leverage = 4

So the operating leverage of the company is 4.

If you have any more questions or need further clarification, feel free to ask! 😊

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