The Financial Statement of SR Corporation - Accounting and Finance Assignment Help

Assignment Task:

Task:

1. a. The financial statement of SR Corporation for the latest period is presented below. The company has 7500 equity shares of Rs10 each. Find the EPS Net Sales Cost of Goods Sold Rs 7,30,000 4,95,700 Selling and Administrative Expenses 87,200 Interest Expenses 22,100 Profit before Tax 1,25,000 Income Tax (40%) 50,000 Profit after Tax 75,000 b. From the following data of a company find the cash flow from operating activity under indirect method: Particulars Current year (Rs.) Previous year (Rs.) Inventories 59,000 72,000 Debtors 94,000 61,000 Prepaid expenses 14,000 3,000 Creditors 82,000 78,000 Income Tax payable 13,000 19,000 The company had reported a net profit of Rs 3,40,000 after current year. tax for the c. Compute the depreciation chargeable to profit and loss account under SLM and WDV for 3 consecutive years from the following data: Cost of Air conditioner Rs6,00,000 Salvage Value Rs 40,000 Useful life 5 years Applicable rate of depreciation is 20% per annum (Answer any two from this section)

Q2. Case Analysis:

CAR CARE (10 Marks) Having worked for a number of years as a supervisor in reputed automobile workshop, Ranjan and Rajan decided to set up their own garage. On January established Car Care, a firm with a capital of Rs 25,000, contributed e 1, 2020 they ually by them. Profits and losses were to be shared equally by them. They bought tools and equipment costing Rs 10,000 (expected life 10 years) for cash. Spares were to be provided by the customers to avoid expensive inventories; however, in order to meet emergency requirements, spares for Rs 3,300 were purchased on credit. Office supplies costing Rs 2,700 were purchased for cash. The business seemed successful from the start, as Car Care received orders from many customers who had been associated with Ranjan and Rajan for a long time. They worked very hard and were always available when problems came up. Yet they were disappointed when they have a balance of Rs 3,000 at the end of 2020. Following is the bank statement of Car Care for the year: Receipts : Rupees Share Capital 25,000 Collections from customers 31,200 56,200 Payments : Tools and Equipment 10,000 Salaries and assistants 8,800 Rent advance for 24 months (paid on 1.1.2020) 9,600 One year insurance policy dated 1.1.2020 1,200 Office Supplies 2,700 Payments to creditors for spares 2,900 Withdrawals: Ranjan 9,000 Rajan 9,000 53,200 Balance: December 31, 2020 3,000 On examining the above statement, Ravi thought to himself, ‘’It looks like I made a mistake in plunging into this venture. After all, I was earning Rs 20,000 in salaries per year in a 9 to 5 job. After a whole year of hard work, I have just got Rs 9,000 from the business.’’ The following additional information is relevant:

I. Amounts receivables for services provided to customers, Rs 29,900.

II. Salaries of assistants for December 2020 Rs 800 not yet paid.

III. Inventory of office supplies on 31.12.2020, Rs 1,930.

IV. Inventory of spares on 31.12.2020, Rs 2,600.

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