| Course Code |
|
MS-04 |
| Course Name |
|
Accounting and Finance for Managers |
| Assignment Code |
|
MS-04/SEM-I/2008 |
| Blocks Coverage |
|
All Blocks |
Note: Please attempt all the questions and send them to the Coordinator of the Study Centre you are attached with.
1. Describe the accounting information system that is being followed by your organization. Also point out the flaws in the prevailing system, if any, and give suggestions to overcome the same.
2. You are required to prepare Funds Flow Statement and Cash Flow Statement for the year ending March 31 2007, based on the information given below.
Balance Sheet
(As on March 31) |
| Liabilities |
2006 |
2007 |
Assets |
2006 |
2007 |
| Trade Creditors |
100 |
40 |
Cash at Bank |
100 |
65 |
| Bills Payable |
50 |
60 |
Accounts Receivable |
105 |
120 |
| Outstanding Expenses |
25 |
20 |
Bills Receivable |
130 |
140 |
| Bonds Payable |
220 |
140 |
Inventory |
110 |
40 |
| Accumulated depreciation |
|
|
Machinery |
120 |
160 |
| - on Machinery |
30 |
35 |
Building |
300 |
310 |
| - on Building |
75 |
85 |
Land |
60 |
130 |
| Reserves |
100 |
115 |
Patents |
55 |
60 |
| Retained Earnings |
130 |
170 |
|
|
|
| Share capital |
250 |
360 |
|
|
|
| |
980 |
1,025 |
|
980 |
1,025 |
Profit from operations after providing Rs.10,000 as depreciation on building and Rs.10,000 on machinery and Rs.5,000 as amortization on Patents for the year ‘April 06 - March 07’ was Rs.35,000. Other revenues for the year were Rs.40,000. An old machine with original cost of Rs.15,000 was sold at a loss of Rs.5,000.
3. Arazon Ltd. Operates a standard costing system. Following information is supplied by the company.
Rs.
Actual Materials Consumed (3,600 units @ Rs.52.50 each) 1,89,000
Direct Wages 22,000
Fixed Expenses 1,88,000
Variable Expenses 62,000
Output during the period was 3,500 units of finished goods.
For the above period, the standard production capacity was 4,800 units and the break-up of standard cost per unit was as follows:
| |
Rs. |
| Material Cost (one unit @ Rs.50 each) |
50 |
| Direct wages |
6 |
| Fixed Expenses |
40 |
| Variable Expenses |
20 |
| Total |
116 |
The standard wages per unit is based on 9,600 hours for the above period at a Rate of Rs.3 per hour. 6,400 hours were actually worked during the above period and in addition, wages for 400 hours were paid to compensate for idle time due to breakdown of a machine and overall wages rate was Rs.3.25 per hour.
You are required to calculate the following variances:
a) Direct material cost variances
b) Material price variance
c) Material usage variance
d) Direct labour cost variance
e) Labour rate variance
f) Labour efficiency variance
g) Variable expenses variance
h) Fixed expenses expenditure variance
i) Fixed expenditure volume variance
j) Fixed expenses efficiency variance
4. How do you envisage your role as a Finance Manager in matters related to dividend policy. What are the alternatives and factors that you may consider before finalizing your views on dividend policy?
5. Choose any organization of your choice and find out the investment appraisal methods that the organization follows. Write a detail note on your visit?
|
