BIRLA INSTITUTE OF TECHNOLOGY, MESRA, RANCHI (END SEMESTER EXAMINATION) CLASS : B.COM SEMESTER : VI BRANCH : B. Com. SESSION : ______ SUBJECT: BCM 402 Corporate Accounting TIME : 3 HOURS FULL MARKS: 50 INSTRUCTIONS: 1. The question paper contains 7 questions each of 10 marks and total 70 marks. 2. Candidates may attempt any 5 questions maximum of 50 marks. 3. The missing data, if any may be assumed suitably. 4. Before attempting the question paper, be sure that you got a correct question paper. Q1. Rajesh Co had the following capital and reserves on 1 April 20X3: Rs.000 Share capital (Rs.1 ordinary shares) 70,00 Share premium 9,00 Revaluation reserve 5,00 Retained earnings 9,000 Shareholders’ funds -------- 1,74,00 -------- …show more content…
Yuvraj Co paid Rs.5,000 in cash. Yuvraj Co also issued 2 Rs.1 shares for every 5 acquired in Fardeen Co and agreed to pay a further Rs.2,000 in 3 years time. Yuvraj Co has only recorded the cash paid in respect of the investment in Fardeen Co. Current interest rates are 5%. The Yuvraj Co group uses the fair value method to value the non-controlling interests. At the date of acquisition the fair value of the non-controlling interest was Rs. 5,750. The market value of Yuvraj’s shares at 1 January 20X3 was Rs.2. Required: Prepare the consolidated Statement of Financial Position of Yuvraj Co group as at 31 December 20X4. (10) Q3. Vijay Co is capable of producing 5,000 units of it product per month. Sales of the product have not been impressive so production has been below capacity for the last three months. Budgeted costs for each level of production are shown below: Output/month 3,500 4,000 4,500 Rs. Rs. Rs. Direct materials 7,000 8,000 9,000 Direct labour 28,000 32,000 36,000 Production overheads 34,000 36,000
As a paving company Jim Turin & Sons, Inc. purchases asphalt from its supplier. Jim has worked it out with the manufacturing company to deliver the material hours before the job since the properties of the asphalt may render it useless if delivered too soon. “Once a job is completed, [Jim Turin & Sons, Inc.] is generally paid within 10 to 30 days of billing” (Justia, 2000).
According to statements of accounts obtained from Yahoo Finance, the financial condition of Clorox company is as shown in the tables below. The financial statements have financial measures calculated in accordance with GAAP and other supplementary information.
Exhibits 1 and 4 present DHB’s original 2003-2004 balance sheets and income statements and the restated balance sheets and income statements for these two-year, respectively. Review the original and restated financial statements for 2004 and identify the “material” differences between them.
Earlier 2002, the stock price of Agnico-Eagle Mines sharply decreased by $1 finally closed at $13.89. This price has reached one of the lowest level, from the company's historical perspective. As a professional equity portfolio manager, who has a large number of AEM stocks on hand. Acker and his team are necessary to find a proper way to estimated the fair value of AEM as well as its equity. Discounted Cash Flow (DCF) has been chosen to do this job. The theory behind DCF valuation approach is that the firm's value can be estimated by using the expected future free cash flow discounted by an appropriate discounted rate (Koller etc 2005). However several assumptions need to be clearly examined within this approach. The following sections are showing the process of DCF step by step.
The purpose of this report is to indicate the financial position of British Petroleum as compared to its competitors. British Petroleum is the world’s seven super major valuable oil and Gas Company and is the constituent of FTSE 100. The company operates through 17800 service stations all over the world and produces about 3.2 billion barrels per day. The company conducts in operations in almost 80 countries. By market capitalisation the company is ranked at sixth position and has been ranked as fifth in terms of revenue generation in the oil and gas industry. (British Petroleum , 2006). This report analyses the financial position of British Petroleum by analysing its current performance to its last year performance and by analysing the performance
In addition, on day 105, the reorder quantity was 13,200. This approach was effective as it increased the number of inventory kits available for production. In total, the company used $2,059,000 to increase its inventory levels. The increased inventory levels and the readjustments of reorder points enabled the factory to increase the number of jobs accepted each day as well as to reduce the number of jobs waiting for kits. In addition, there was a high number of kits queued at station one from day 80 which was accompanied by increased utilization of station one. Besides, we were able to reduce the lead time for all the orders and this enabled the company to increase its revenues.
Evaluating a company’s financial condition can be done by looking at its profitability or its ability to satisfy long-term commitments. These measures can be viewed through an analysis of a company’s financial statements, including the balance sheet and income statement. This paper will look at the status of Scholastic Company’s (Scholastic) ability to satisfy its long-term commitments and at the profitability of Daktronics, Inc. (Daktronics). This paper will include various financial ratio calculations and an analysis of the notable trends. It will also discuss the profitability and long-term borrowing positions of the firms discussed.
(a) What are the agency costs of debt and outside equity as described in Jensen and Meckling (1976) and are they important in corporate finance?
The directors need to be able to view the financial performance of the group in order to make relevant and informed decisions. In order to obtain this information the correct procedures, as mentioned, must be followed to ensure that assets are not overstated and liabilities
The overall purpose of cost accounting is to advise top administration and the management team on the most suitable and cost effective methods and actions to employ based on cost, capability and efficiencies of a given product or service. It can be defined as the method where all the expenditures used during execution of business activities are gathered, categorized, examined and noted down (Horngren & Srikant, 2000). Once these numbers are gathered and recorded the information is used to determine a selling price and/or to identify possible investment opportunities. Although the principal aim or function of cost accounting is to help the business administration with their decision making and business planning process, the cost accounting data
The basic earnings per ordinary share in 2016 is RM19.14 and RM14.30 in 2015. This shows that the ordinary share had been increased RM4.84 compare to 2016 based on 2015. In the other hand, this company had declared a first interim single-tier dividend of 10 sen per ordinary share amounting to RM22.88 million in respect of the financial year ended 31 December 2016. They sold their ordinary shares of RM400,000,000 units of RM0.50 per each in 2016 and RM200,000,000 units of RM0.50 per each in 2015 to their shareholders. It is increased from 2015 to 2016 with 200,000,000 units. The other investments that available for sale is RM1000 same as in 2015 and 2016.
Accounting aids the government and organisations in decision making for their financial stability. This numerical data helps solve real life problems and contributes to how the economy and businesses perform.
This paper discusses the how the finance function will drive business excellence in a global environment with emerging challenges in the areas of regulation technology, risk, globalization, talent capability.
The revenue/cost period-: Revenue and the cost period in accounting that the company get income from normal business activities. It’s referred to normal business income that the company got by selling their product and service.
ABC LTD COMPREHENSIVE INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2012 NOTE 2012 Revenue 2 828,500 Cost of sales 3 (460,000) Gross profit 368,500 Other income 4 2,500 Operating expenses 5 361000 Profit before income tax 10000 Income tax expense (30%) 3,000 Profit for the year 7000 Other comprehensive income change in revaulation surplus 38500 Other comprehensive income for the year, net of tax 38500 Total comprehensive income for the year 45500 ABC LTD STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30 JUNE 2012 NOTES 2012 ASSETS Current assets Cash and cash equivalents 6 100500 Trade and other receivables 7 45,200 Inventories 8 87700 Other current assets 9 7000