StatementofCashflowsason31.12.2014
Particulars
Netincome
Add:CurrentLiability
Less:CurrentAssets
CashflowfromOperatingActivity
CashflowfromInvestingActivity
CashflowfromFinancingActivity
NetCashImpact
OpeningCashBalance
ClosingCashBalance
StatementofIncomeason
31.12.2014
Particulars
Salesfortheyear
Less:Expensesfortheyear
Add:OtherIncomefortheyear
Netincomefortheyear
BalanceSheetasat
31.03.2014
Assets
NonCurrentassets
Cashyearend
TotalAssets
Liabilities
StockholdersEquity
CurrentLiability
NCL
Amount
903944
833698
1039216
698426
242106
752815
296495
1335711
1039216
Amount
6484426
5580948
466
903944
Amount
5400410
1039216
6439626
Amount
3251559
833698
2354369
6439626
TotalLiabilities
Netincome
Add:DecreaseinCurrent
liability
Less:IncreaseinCurrentAssets
CashflowfromOperating
Actiivty
Balancin
gfigure
903944
833698
1,039,216
698426
Answer2:
Jan01
OpeningStock
Purchases
Purchases
Purchases
Closingstock
Units
Price
130
10
200
12
50
9
110
10.5
120
CostofGoodssold=Openingstock+Purchasesclosingstock
COGS=370
ThecalculationofClosingstockisasfollows:
UnderFIFOMethod
ClosingStock
TotalClosingStock
UnderLIFOMethod
ClosingStock
for10
90 unitsat$9
115 for110
5
unitsat
$10.5
124
5
For120
Unitsat
1200 $10
Answer3:
Particulars
Tradereceivables
Add:Allowances
2014
6,049
296
2013
6,377
323
GrossAmountofReceivables
6,345
6,700
GrossAmountofReceivables
(a)
Allowances(b)
Ratio(a/b)
6345
296
4.67%
6700
323
4.82%
Theallowancesratioisgettingbetterastherearelessbaddebtsforallowancesthoughthereisafallin
theamountofreceivables.
CommonSizeAccounts
receivables
Particulars
Tradereceivables
Add:Allowances
2014
6049
296
2013
6377
323
GrossAmountofReceivables(a)
6345
6700
37180
37121
5.85973207
2
5.54044776
1
Sales(b)
Ratio(b/a)
Thecommonsizeratioisdeterioratingaspertheabovecalculations.
Thequalityofthecompanyaccountsreceivablesistheyareilliquidtherealisationofmoneyfrom
debtorsareslowaspercomparedtothesalesamount.
Answer5:
Netincomeandcomprehensiveincomediffersasbecause
netincometakesintofactoralltheexpensesandanddoestakeintofactor
theextraordinaryitemsoritemsbelowtheline.
Comprehensiveincomemeanstheyrepresentthecorebusinessincomeafter
adjustingcertainfactorsandthenderivingthefinalvalue.
Foreigncurrencyadjustmentaffectsthecomprehensiveincomeinversely.
Iftheforeigncurrencyeffectisnegativeandrisingthenitwilldecreaseourcomprehensiveincome
Iftheforeigncurrencyeffectispositivethenitwillincreaseourcomprehensiveincome
DuringtheyearthevalueofdollarforJamesandBrainInchasfallenthatisthereasontheirisalossin
thecalculation.
Dollarhasfallenwhichleadstomoreamountpayableinforeigncurrencyandresultedinanegative
figure.
Answer4:
ThepurposeoftheAllowanceforloanandleaselossesistoreflectestimatedcreditlosseswithinthe
company'sportfolioofloansandleases.Estimatedofthesecreditlossesareestimatesofthecurrent
amountofloanthatareprobablethatthecompanywillbeunabletocollectgiventhefactsand
circumstancessincetheevaluationdate.
Progressivemanagerswilltrytoreservetomanageincomebyunderstatingtheallowanceforloans
andleaselossesandoverstatingtheincome.Sincetheyareprogressiveandtheywillnotconsiderthe
effectofsuchallowances.
Forexample
LoansandLeases
Less:OperatingLiabilityforLoansand
leases
NetLoansandLeases
100000
Asperratecalculatedbyhistoricaldata
10%
10000
90000
Theamountof10000willbeadjustedwiththereservesandtheNetstockholdersequitywillbelow.
Supposeiftherateis15or20%thentheamountoflossesismoreanfthenetimpactwillaffectthe
stockholdersequitymore.