QUESTION4. a) Write a note on “Schedule of Changes in Working Capital”.
QUESTION4. a) Write a note on “Schedule of Changes in Working Capital”.
Answer4a. The information relating to the changes in current natured accounts between two periods of time presented in the form of a statement is what we call the schedule/statement of changes in
- b) Prepare a Schedule of changes in Working Capital from the Balance Sheets given :
Answer4b.Here is the
QUESTION5. A Ltd. and B Ltd. Sell the same type of product in same type of market. Their budgeted Profit & Loss for the year ending 2015 are as under : A Ltd. B Ltd.
Rs. Rs. Rs. Rs.
Sales 1,50,000 1,50,000
Less : Variable Cost 1,20,000 1,00,000
Fixed Cost 15,000 35,000
1,35,000 1,35,000
Budgeted Profit 15,000 15,000
- a) Calculate the BEP and (b) Margin of Safety in each business, (c) State which business is likely to earn greater profits in conditions of (i) heavy demand for their product (ii) low demand for their product