Financial Analysis Sample Questions

read/write head 1 VMA moderate is a provider of office equipment in Newport. The companion is in any case listed on the London stock exchange. The traditionalistic company has a placard of directors comprising cardinal executive directors and twain non-executive directors. It also has two sub-committees, which be the audit committee and nomination committee. The Audit committee is do up of two non-executive directors whilst the nomination committee is made up of two executive directors and single non-executive director.Currently, Sir Williams, the CEO, is responsible for remuneration of the directors. The board of directors is cooking to bid for a contract amounting to ? 5million for the supplying of office equipment to government schools across Newport for the next five classs. However the directors are worry about the companys runniness position as this might dissemble the chances of securing the contract. As the management trainee with a MBA, you hurt been task ed by the board to prepare a bid proposal establish on the following financial information supererogatory notes . Administration expenses include ? 290,000 which is depreciation of non flow rate assets during the year. 2. The company sold an asset which had a net book value of ? 310,000 for ? 80,000. 3. During the year the entity acquired non-current assets costing ? 1,900,000. 4. A dividend of ? 700,000 was declared during the year. take Preparation of cross addressed to the board of directors which includes the following (a) Statement of Cashflows and its evaluation (30%) (b) An estimate of the companys working not bad(p) management and (10%) c) An evaluation of the companys compliance with the corporate governance code. (10%) totality 50% Question 2 Kapoor Limited is a company that manufactures plastic watches in Chennai. The start-up has been in operation for six calendar calendar months and does not piss a decent budgetary governing body in place. The company owners ha ve asked you to set up a neo budgetary system for the company based on the following information special information 1. Ninety per cent of the periodical sales for money. the remainder will be sold on extension, the receivables settling whiz month after sales 2. compensation are paid sixty per centum during the month in which they are earned, forty per cent in the month following. 3. unsettled overhead is paid in the month in which it is incurred. 4. Material costs are paid two months after the physical is used in production 5. The company will purchase a modernistic pick up truck for ? 14,000 in August. The present truck will be sold in the same month for ? 4,500. 6. The company intends to pay the insurance agio amounting to ? 5,000 in two equal instalments in the month of June and August 7.The depreciation accommodate of ? 1,000 a month is included in the Fixed overhead. 8. The cash balance on 1 June 2009 is expected to be ? 3,000 in hand. Required Prepare a report to the owners which should include the following (a) The process of mise en scene up a budgetary system and its significance to the company (16%) (b) A cash budget for each of the two months commencing 1 June 2009. (24%) (c) An assessment of how to evaluate which customers should receive credit and how of much should be offered. (10%) Total 50%