These questions can be found via
MS 04
http://www.ignou.ac.in/Assignments/management/ms1.htm
Please help me out for these questions.
Ques.2: The following is the Trial Balance of a trader as at 31st December, 2001:
Ques.4 : The capital structure of Bombay Refrigeration Company Ltd. Consists of an equity share capital of Rs. 3, 00,000 (share of Rs. 10 par value) and Rs. 3,00,000 10% debentures. Sales increased by 20% from 30,000 to 36,000 units, the selling price is Rs. 10 per unit. Variable cost Rs.6 Per unit and fixed costs amount to Rs. 50,000 The company’s tax rate is 50%.
You are required to compute the degree of operating leverage, degree of financial leverage and degree of combined leverage.
Ques. 5: The following details relates to the two machines X and Y:
Machine X Machine Y
Cost
Estimated Life
Estimated salvage value
Working Capital required in the beginning Rs. 56,125 Rs.56,125
5 years 5 years
Rs. 3,000 Rs. 3,000
Rs.10,000 Rs. 20,000
Annual income after tax and depreciation:
Year Rs. Rs.
I 3,275 11,375
II 5,375 9,375
III 7,375 7,375
IV 9,375 5,375
V 11,375 3,375
Overhauling charges at the end of third year Rs. 25,000 on machine X. Depreciation has been charged at straight line method. Discount rate is 10%? P.V.F. at 10% for five years are 0.909, 0.826, 0.751, 0.683 and 0.621. Suggest which project should be accepted.
I'll be very thankful to you.
Thanks & Regards,
Pinkki Manohar
