From the following Balance Sheet of M/S Amit Enterprises, you are required to prepare: Schedule of changes in working capital

(ii) Funds flow statement

(iii) Funds from operations

<br><br> <img src='./qimages/11746-1a.jpg'>

Additional information: Depreciation of Rs 5,000 has been charged on Plant and Machinery. Machinery amounting to Rs 50,000 was sold for Rs 49,400. M/s Ayush Pratyush Enterprises has an investment opportunity costing Rs 30,000 with the following expected net cash flow
(i.e., after tax and before depreciation)

<img src='./qimages/11746-1b.jpg'>

Using 10% as the cost of capital (rate of discount) determine the following: Payback period

(ii) Net Present Value at 10% discounting factor

(iii) Profitability index at 10% discounting factor

(iv) Internal Rate of Return with the help of 10% discounting factor and 15% discounting factor

2. "Ratio analysis is widely used as a tool of financial analysis, yet it suffers from various limitations." Explain.

3. What is meant by Accounting Equation? Explain it by giving at least five suitable illustrations.

4.(a) You are required to calculate 'Return on Capital Employed' (ROCE) from the following:

Net Profit after Tax 2,00,000

Rate of Income Tax 50%

4,000 10% Convertible 4,00,000
Debentures of Rs100 each

Current Assets 4,30,000

Current Liabilities 2,30,000

Fixed Assets (at cost) 9,70,000

Depreciation upto date 1,70,000 Give a format of Profit and Loss A/c and Balance Sheet with imaginary figures.

5. Write short notes on any four of the following: Contingent Liabilities and Estimated Liabilities Economic Profit and Accounting Profit IRR and ARR VED Analysis Accounting Equation Money Measurement Concept