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Downloadable File: Yes
Ms-04 Accounting and Finance for Managers
Course: Master of Business Administration
Fully Solved: Yes
MS-04 Solved Assignment 2021 – Accounting and Finance for Managers
1. Explain the purposes of Accounting Information? Which purpose, in your opinion, is most important and why?
2. The following are the summarized Balance Sheets of ABC Ltd as on 31st December, 2019 and 31st December 2020, respectively:
Balance Sheets as at 31st December
(Rs. In thousands)
Freehold Property at Cost 33.00 24.00
Plant and machinery (cost less depreciation) 20.80 60.30
Inventories 30.35 32.85
Sundry Debtors 20.10 24.75
Cash and Bank 9.25 16.80
Preliminary Expenses 1.20
Issued Share Capital 60.00 75.00
Share Premium Account – 5.00
Capital Reserve – 17.00
Profit & Loss Account 21.50 21.20
Sundry Creditors 27.20 32.60
Proposed Dividends 6.00 8.50
3. Discuss the techniques of Absorption Costing and Marginal Costing using a suitable example.
4. Explain the different types of Budgets prepared in an Organization of your choice and discuss the relevance of these budgets to that organisation.
5. Alpha Ltd is considering a capital investment proposal where two alternatives, involving differing degrees of mechanization, are being considered.
New machinery would cost Rs. 2,78,000 in option 1 and Rs. 8,05,000 in option 2. Both these investments would have a five year life, however it is anticipated that the scrap values after 5 years would be Rs. 28,000 and Rs. 1,50,000 respectively. Depreciation is provided on a straight line basis. Annual Cash Inflows, expected to be generated for option 1 is Rs. 1,00,000 and Rs. 2,50,000 for option 2. The cost of capital is 15%. You are required to calculate the following for each option:
(i) The payback period
(ii) The Accounting rate of return, based on average book value
(iii) The Net Present Value
(iv) The Internal Rate of Return.
As a Manager which option you would prefer, give reasons for your preference.