Financial Analysis Sample Questions

Question 1 VMA Limited is a provider of office hardware in Newport. The organization is likewise recorded on the London stock trade. The conventional organization has a top managerial staff containing two official chiefs and two non-official executives. It likewise has two sub-boards of trustees, which are the review panel and designation advisory group. The Audit board of trustees is comprised of two non-official chiefs while the selection advisory group is comprised of two official executives and one non-official executive. As of now, Sir Williams, the CEO, is answerable for compensation of the chiefs. The top managerial staff is wanting to offer for an agreement adding up to ? 5million for the arrangement of office gear to government schools across Newport for the following five years. Anyway the executives are stressed over the company’s liquidity position as this would influence the odds of making sure about the agreement. As the administration student with a MBA, you have been entrusted by the board to set up an offer proposition dependent on the accompanying money related data: Additional notes: . Organization costs incorporate ? 290,000 which is deterioration of non current resources during the year. 2. The organization sold a benefit which had a net book estimation of ? 310,000 for ? 80,000. 3. During the year the element procured non-current resources costing ? 1,900,000. 4. A profit of ? 700,000 was proclaimed during the year. Required Preparation of report routed to the top managerial s taff which incorporates the accompanying: (a) Statement of Cashflows and its assessment; (30%) (b) An appraisal of the company’s working capital administration and; (10%) c) An assessment of the company’s consistence with the corporate administration code. (10%) Total half Question 2 Kapoor Limited is an organization that produces plastic watches in Chennai. The beginning up has been in activity for a half year and doesn't have a better than average budgetary framework set up. The organization proprietors have requested that you set up a cutting edge budgetary framework for the organization dependent on the accompanying data: Additional data: 1. 90% of the month to month deals for money. the rest of be sold using a loan, the receivables settling one month after deals 2. Wages are paid 60% during the month in which they are earned, 40% in the month following. 3. Variable overhead is paid in the month in which it is caused. 4. Material expenses are paid two months after the material is utilized underway 5. The organization will buy another get truck for ? 14,000 in August. The current truck will be sold around the same time for ? 4,500. 6. The organization means to pay the protection premium adding up to ? 5,000 out of two equivalent portions in the long stretch of June and August 7. The devaluation charge of ? 1,000 a month is remembered for the Fixed overhead. 8. The money balance on 1 June 2009 is relied upon to be ? 3,000 close by. Required Prepare a report to the proprietors which ought to incorporate the accompanying: (a) The way toward setting up a budgetary framework and its hugeness to the organization; (16%) (b) A money financial plan for every one of the two months starting 1 June 2009. (24%) (c) An appraisal of how to assess which clients ought to get credit and how of much ought to be advertised. (10%) Total half