ACC501 Practice Questions Lectures 1-18

ACC501 – Business Finance · (Lesson # 1 – 18) · IMPORTANT INSTRUCTIONS:

Dear Students,

• You are required to solve/attempt all the questions on your own. DO NOT send the solution of any question to the teacher via MDB, Ticket or Email because the solution file will also be uploaded in a few days. (Any query relevant to these questions will be addressed in the upcoming interactive live session of the course.)
• You must consult the relevant lesson before attempting any question. In case you have any problem while attempting the question, you may note it down for the discussion in the upcoming interactive live session. DO NOT send any questions through MDB, Ticket or Email.
• Once the solution file is uploaded, you may compare your attempts with the actual solution of the questions.
• The questions provided in this file are solely for the practice purpose. If you try to attempt/solve these questions with due attention, you may be able to attempt the numerical questions in exam as well.
• For practicing MCQs, you are advised to attempt the ‘Formative Assessment Quizzes’ available in the “Reading” tab of Lessons # 3, 6, 10, 11, 14, 15, 17 and 19.
• As far as theoretical questions are concerned, you are advised to watch video lectures carefully and consult the handouts along with recommended book(s).

Good Luck,

Instructor ACC501

(Lesson # 1 – 18)

1. The following data is available for ZT Corporation for the year ended 31 December 2023. You are required to prepare the Balance Sheet of this corporation:

• Short-term debt of Rs. 40,000
• Long-term debt of Rs. 500,000
• Current assets of Rs. 240,000
• Net fixed assets of Rs. 650,000

2. Calculate the Shareholder’s Equity of the ZT Company, if the company has:

Items

Rs.

Cash and equivalents

Property, plant, & equipment 1470 Long term debts

3. Ali Corporation has a taxable income of Rs. 85,000. What will be the Total Tax for this Corporation? Use the following schedule for tax calculations.

Taxable Income Tax Rate (%). Rs. 0 50,000 50,001 - 75,000 75,001 - 100,000 100,001335,000

4. From the following information of Alfa Corporation, calculate the “Operating Cash Flow”: Rs. Sales 13,500 6,400 Deprecation 12,00 Interest Expense Tax
5. What would be the Net Capital Spending if Alfa Corporation had fixed assets of Rs. 100,000 at the start of the accounting year whereas at the end of the same accounting period, the value of these assets is Rs. 150,000 while the depreciation is of Rs. 20,000 as per the yearly income statement.
6. You are required to calculate Cash Flow to the Creditors and Cash Flow to the Stockholders from the following financial data:

Rs. (‘000)

Interest paid Retirement of debt Proceeds from new debt sales Dividends paid Repurchase of Stock Proceeds from new stock issue

7. From the given information of Alfa Corporation, you are required to calculate the Cash Flow from the firm’s assets and the Cash Flow to the investors:

Rs. (‘000)

Debt

Equity

8. From the given information, prepare the Cash Flow Statement of Alfa Corporation by estimating cash flows from operations, investments, and financing:

Rs. (in '000)

8,500 Acquisition of fixed assets 19,700 Proceeds from long-term debt sales 8,500 Dividends Paid 4,200 Sales of fixed assets 2,400 Increase in accounts receivable 2,300

9. From the following data pertaining to XYZ Corporation, you are required to calculate the Current Ratio along with complete calculations:

Items

Rs. Cash 450,000 525,000 830,000 Land and Machinery 620,000 Inventory 310,000 120,000

10. The following data represents the assets side of a corporation. You are required to convert this data into a common size (standardized) statement. Rs.

(Million)

Cash Receivables

Total Current Assets

Fixed Assets

Plant and Machinery