Ask Question, Ask an Expert


Ask Financial Accounting Expert

problem 1)a) What do you understand by balancing an account? What is the procedure for balancing an account?

b) Mention the nature of account (nominal, real or personal) and show which account will be debited and which account will be credited. Also state the rule to be followed during the accounting process.

(i) Rent paid,

(ii) Interested received,

(iii) Building purchased,

(iv) Machinery sold,

(v) Capital introduced.

c) John Bakery has purchased a new kneading machine. Following information is available about it. Initial Cost: Rs.1,00,000 Life: 4 Years Salvage Value after 4 years: Rs.50,000 Depreciation: Straight line method The net present value of this machine is Rs. 60,000. If the profit after tax is a constant amount, what is it? The tax rate is 60%. Assume a cost of capital of 12%.

problem 2)a) The following information is available for Olympic Limited:

                                                                                        Rs. (in millions)
Average stock of raw materials and stores                                      200
Average work-in-process inventory                                                300
Average finished goods inventory                                                  180
Average accounts receivable                                                          300
Average accounts payable                                                             180
Average raw materials and stores consumed per day                         10
Average work-in-process value of raw materials committed per day   12.5
Average cost of goods sold per day                                                 18
Average sales per day                                                                     20

Compute the duration of the operating cycle.

b) From the following information given below, compute

(i) Current Liabilities

(ii) Current Assets

(iii) Liquid Assets

(iv) Inventory Current ratio = 2.5, Acid-test ratio = 1.5, Working Capital = Rs. 60,000.

c) A firm has sales of Rs.10, 00,000, variable cost of Rs.7, 00,000 and fixed cost of Rs.2, 00,000 and debt of Rs.5, 00,000 at 10% rate of interest. What are the operating, financial and combined leverages? If a firm wants to double its Earnings Before Interest and Tax (EBIT), how much of a rise in sales would be needed on a percentage basis.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M96453

Have any Question? 

Related Questions in Financial Accounting

Assignmentbullpreparationfor this problem you will need to

Assignment • Preparation For this problem, you will need to select two publicly traded companies. For comparison purposes, the two companies should be competitors within the same industry. Once you have selected two publ ...

Project - transactionsinstructionsthis project is a review

Project - Transactions/Instructions This project is a review of the accounting cycle that has been covered during class. You have two weeks to complete the project. Please prepare all information in a professional manner ...

Accounting for contributions vary by usethe city of

Accounting for Contributions Vary by Use The City of Jamestown has agreed to acquire a new city maintenance building under a capital lease agreement. At the inception of the lease, a payment of $100,000 is to be made; ni ...

Application calculating variances and analyzing the

Application: Calculating Variances and Analyzing the Results While many organizational costs can be planned for, the actual results may vary from the initial projections. Assessing how these variances impact the bottom l ...

1 wellplace hospital provides you with the following

1. Wellplace Hospital provides you with the following financial statements for 20X2 and 20X1: December 31 20X2 20X1 Cash $ 168 $ 211 Temporary investments 126 34 Receivables-patients, net 1,011 893 Inventory 296 315 Prep ...

Question 1archer daniels midland company is considering

Question 1: Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.00 million. This investment will consist of $2.00 mill ...

Which survey method mail telephone or personal interview

Which survey method (mail, telephone, or personal interview) would you use for the following situations? Explain your choice. Situation 1 Administration of a questionnaire by a local auto dealership that wishes to find o ...

Assignmentconsider the listing at 4815 catoctin san diego

Assignment Consider the listing at 4815 Catoctin San Diego, CA 92115 Price $475,000 Bob Betty Homebuyers want to make an offer on this property at the list price. Bob earns $48,000 per year and Betty earns $54,000 per ye ...

On january 1 2004 digital inc leased heavy machinery from

On January 1, 2004, Digital, Inc. leased heavy machinery from Young Leasing Company. The terms of the lease require annual payments of $20,000 for twenty years beginning on December 31, 2004. The interest rate on the lea ...

Question 1the buck store is considering a project that will

Question 1 The Buck Store is considering a project that will require additional inventory of $216,000 and will increase accounts payable by $181,000. Accounts receivable are currently $525,000 and are expected to increas ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen