Working capital management

answered on 28-Apr-24 13:14

On page 9.52 of module 2 , illustration 8, in cash flow statement, 50 lakh is subtracted as cash required for increase in stock. Please explain why it is subtracted , as also adjustment is done in making entry in profit and loss account of 420 lakhs of material consumed in year 3 .

latest answer

Cash flow statement is not under the purview of FM. Please post in the concerned subject

Anirved Rahatgaonkar

CA Inter

★ 0

1

60

Leverage

answered on 28-Apr-24 04:54

Is there any simple way to do this sum

latest answer

Please follow the method suggested in the video sessions

Sai Ram

CA Inter

★ 540

1

69

Doubt Regarding wacc calculation

answered on 29-Apr-24 04:22

Sir, in illustration no.21, in the first part of the question wacc was found out to be 11.375%,in the second part of the question the price of the equity share drops to 16, and so the wacc was revised.While in the first part of the question the WACC found out can directly be applied to the total capital employed to get the cost the firm would have to pay , this cannot be done using the revised wacc that has been calculated. This is due to the fact that the revision was done using book value as weights.......SO, shouldnt we use market value weights to get an accurate result?

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thank you sir :)

aravind lalji

CA Inter

★ 0

4

87

Working capital management

answered on 24-Apr-24 19:47

Will anyone pls guide me how can i done that calculation

latest answer

Please follow the solution provided in the video

G Creddy

CA Inter

★ 945

1

55

Dividend decisions

answered on 23-Apr-24 18:59

Will any one solve this to me plzz

latest answer

Kk sir thank u

G Creddy

CA Inter

★ 945

9

114

Discounted payback period

answered on 23-Apr-24 15:40

Sir as you said, last year CFAT and TMCI should be written separately to calculate the discounted payback period and in ICAI material last year CFAT and TMCI taken combinely . SO WHAT SHOULD WE FOLLOW IN EXAM TO GET MAXIMUM MARKS.

latest answer

Please follow ICAI method only in the examination

Narasimha G

CA Inter

★ 2K+

1

78

doubt regarding assumption taken in question

answered on 29-Apr-24 04:21

works cost is assumed to be equal to the cost of good sold under the assumption that the opening & closing value of both wip and finished goods is not given in the question, but the value of closing stock of finished goods is given in the question, and is also computed later on by sir at 6 % of the works cost,so isn't this assumption worng?

latest answer

thank you sir

aravind lalji

CA Inter

★ 0

2

91

Capital structure

answered on 23-Apr-24 15:50

In this sum the mentioned it as Vf then why it is considered it as Ve If we take it is Vf then 350 will be the EBIT Please explain

latest answer

Could you please be clear and specific in asking the question

Sai Ram

CA Inter

★ 540

1

65

Leverages - MCQ 1 & 2

answered on 23-Apr-24 16:57

There is error in the answers of the MCQ test. Its showing wrong explanation.

latest answer

These two MCQs have been corrected

Pranesh N

CA Inter

★ 4K+

4

69

NP for kr - IP or MP

answered on 23-Apr-24 15:57

Hii could someone clarify my following doubt regarding FM COC? In the illustration 13 of ICAI SM, the net proceeds for kr is Market price whereas in the practical sum no 5 of ICAI study material, net proceeds for kr is Issue price. Could anyone tell me when should MP and IP be used for the purpose of kr computation?

latest answer

Institute has stated that For computation of Kr MP may be considered as NP (as per Illustration 13). It also say that alternatively even IP may be considered as NP (practical problem 5). So any method can be considered, but please mention a note about the alternative method also.

Padmanaban Munusamy

CA Inter

★ 0

3

84