for the year 8068, To Opening stock 1378 By Sales 33984, To Purchase (BD 25972 Sales Return 380, To gross profit 8068 33604, 35418 35418, Cost of Goods Sold = Cost of Goods Sold / Average Stock, Average Stock = (Opening Stock + Closing Stock)/ 2, (iii) Percentage of Gross Profit to Turnover = Gross Profit / Sales *100. This test comprises 40 questions on Management Accounting. Here are the answers to some of the most frequently asked Financial Analyst interview questions for the position of a financial analyst: Download PDF. Report a Violation 10. 4 Calculate the capital gearing from the following information: Rs. Financial ratio analysis is one of the best tools of performance evaluation of any company. Disclaimer 8. Cost of Goods sold = Op. MBA Finance frequently Asked Questions by expert members with experience in MBA finance . Bills Receivable from the buyer of fixed assets, should be excluded. MBA Sales™ Degree Sample Test Questions Question 1 Selling involves: Choice-1: pushing the product in the market without any consideration for your customer's needs and wants Choice-2: trying to make your customer want what the company has to offer Choice-3: focus is on your product Choice-4: focus is on your customer Choice-5: Options 1, 2 and 3 Prohibited Content 3. But the Net Profit Ratio is only 5%. It is an indication of excessive inventory and over investment in inventory. Quick ratio helps us find the solvency for six months and the reason why inventory is subtracted is that inventory usually take more than six month to convert into liquid asset. Bad and doubtful debts and their provisions are not deducted from the total debtors in order to avoid the impression that a larger amount of receivables have been collected. From the following details of a trader you are required to calculate : (iii) Percentage of Gross profit to turnover, Sales $ 33,984 Stock at the close at cost price 1814, Sales Returns 380 G.P. Problem 8. BBA quiz multiple choice questions test for BBA MCQ exams, educational questions with answer BBA MCQ GK explaination. The firm can increase the rate of return on investment by increasing production. A STUDY ON RATIO ANALYSIS AT AMARARAJA BATTERIES LIMITED (ARBL) A PROJECT REPORT Submitted in partial fulfillment of the requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION Under the Guidance of S.SUJATHA M.B.A., M.Phil ASSISTANT PROFESSOR OF MANAGEMENT STUDIES SRM UNIVERSITY By SUNEEL.R (Reg.No.35080623) DEPARTMENT OF … 8. Ratio analysis project 1. Therefore, the liquidity position is not satisfactory. Content Filtration 6. The following is the Trading and Profit and loss account of Mathan Bros Private Limited for the year ended June 30,2001. In this Ratios Analysis MBA Project calculating the past financial statements of the same firm does ratio analysis. CBSE issues sample papers every year for students for class 12 board exams. The state of low return is not desirable. (ii) Estimates can be obtained using A. M. (iii) A. M. is used for different purposes by different persons like it is used for calculating average marks of the students. For example, maturity of debentures cannot be identified with ratio analysis. The Balance sheet of Naronath & Co. as on 31.12.2000 shows as follows: Liabilities $ Assets $, Equity capital 1,00,000 Fixed Assets 1,80,000, 15% Preference shares 50,000 Stores 25,000, 12% Debentures 50,000 Debtors 55,000, Retained Earnings 20,000 Bills Receivable 3,000, Creditors 45,000 Bank 2,000, 2,65,000 2,65,000. To help identify the short term liquidity of a firm, this ratio is used. Here is a compilation of top thirteen accounting problems on ratio analysis with its relevant solutions. On the overall evaluation at each and every aspect, the following findings are found. Task: Students will be required to use the financial ratio analysis question available on moodle and in the subject outline. Calculate stock turnover ratio from the following information : Opening stock 5 8,000, Purchases 4,84,000, Sales 6,40,000, Stock Turnover Ratio = Cost of Goods Sold / Average Stock. Problem 4. 4 times b. From the data calculate : (i) Gross Profit Ratio (ii) Net Profit Ratio (iii) Return on Total Assets (iv) Inventory Turnover (v) Working Capital Turnover (vi) Net worth to Debt Sales 25,20,000 Other Current Assets 7,60,000. This video helps you to learn Calculation of Financial Ratios with the help of practical example 2 RATIO ANANLYSIS Introduction The ratio analysis is the most powerful tool of financial analysis. 30 MBA Finance Questions and Answers: 1:: What are the various streams of … questions are followed by the purpose of this thesis. Firm managers use accounting information to help them manage the ﬁ rm. • Liquidity ratios have continuously gone under various fluctuations in the last five years. address all of these questions through financial analysis. Fixed assets are not used properly. Question. $ $, To Stock in hand 76250 By Sales 500000, To Purchases 315250 By Stock in hand 98500, To Carriage and Freight 2000, To Wages 5000, To Gross Profit 200000, 598500 598500, Expenses 1,01,000 By Gross profit 2,00,000, To Finance Expenses. 1, 00,000. Here is a compilation of top thirteen accounting problems on ratio analysis with its relevant solutions. Examples of Questions on Ratio Analysis. The three common liquidity ratios used are current ratio, quick ratio, and burn rate. Q1. Copyright 9. Also, if you want to know more about one … A low ratio may be result of inferior quality goods, stock of un-saleable and absolute goods. So get preparation for the MBA Finance job interview . Price-earnings ratio. DEFINITION: “The indicate quotient of two mathematical expressions and as “The … Cost of sale 19,20,000 Fixed Assets 14, 40,000. The shorter the average collection period, the better the quality of debtors. These interview questions and answers on MBA Finance will help you strengthen your technical skills, prepare for the interviews and quickly revise the concepts. Problem 5: From the following particulars pertaining to Assets and Liabilities of a company calculate : (a) Current Ratio (b) Liquidity Ratio (c) Proprietary Ratio, (d) Debt-equity Ratio (e) Capital Gearing Ratio, Liabilities $ Assets $, each 500000 Land & Building 500000, 8% 2000 pre shares $ 100 Plant & Machinery 600000, Each 200000 Debtors 200000, 9% 4000 Debentures of Stock 240000, $ 100 each 400000 Cash and Bank 55000, Reserves 300000 Prepaid expenses 5000, Creditors 150000, Bank overdraft 50000, 1600000 1600000, Current Assets = Stock + Cash + Prepaid Expenses + Debtors, = 2,40,000 + 55,000 + 5,000 + 2,00,000 = 5,00,000, Current Liabilities = Creditors + Bank Overdraft, Liquid Ratio = Liquid Assets / Liquid Liabilities, Liquid Liabilities : Creditors = 1,50,000, Proprietor’s Ratio = Proprietor’s Fund / Total Tangible Assets, Proprietor’s Fund = Equity Share Capital + Preference, Debt – Equity Ratio = External Equities / Internal Equities, External Equities = Long-term Liabilities + Short-term Liabilities, Capital Gearing Ratio = Fixed Interest Bearing Securities / Equity Share Capital + Reserves, Fixed Interest Bearing Securities = Preference Shares 2,00,000. 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