NMIMS MBA Financial Accounting Solved Answer Assignment

Financial Accounting

NMIMS MBA Financial Accounting Solved Answer Assignment

Question 1: Analyse the following transactions for Surprise Ltd. using the concept of Accounting Equation comprising of Assets, Liabilities and Equity. (10 Marks) 

1. Commenced business with cash of ₹ 5, 00,000. 

2. Purchased equipment for cash ₹ 2, 00,000. 

3. Purchased furniture worth ₹50,000 on credit from IndiMart. 

4. Purchased raw materials for ₹25,000 against cash from XYZ Suppliers. 

5. Deposited cash of ₹ 1, 25,000 in the current account. 

6. Sold goods for ₹75,000 and received a cheque against the same

Introduction

Using the idea of the accounting equation, an analysis of the transactions for surprise Ltd. famous that the agency’s belongings are growing as a direct result of the company’s business operations and that the company’s liabilities and fairness also are increasing as a direct result of the financing of those belongings. This is the situation we find ourselves in because the accounting equation demonstrates that the company’s properties are growing as an instantaneous result of the firm’s activities.

Concept and application

The following buy was made at IndiMart and included shop credit to pay for furniture purchases. The credit score restriction for this transaction turned to 50,000 rupees. This ended in an increase in the furniture stock fee, an asset, but it also increased the value of the accounts payable to IndiMart, which is a liability. The fourth deal included buying raw materials from XYZ suppliers for the price of 25,000 yen and the use of cash as a fee. Because of this, the coin’s stability went down, but at the same time, the asset cost of the uncooked materials went up.

Conclusion

Thus, the analysis of transactions for Surprise Ltd. based on the accounting equation reveals that the company’s assets are growing as a consequence of its business activities, but its liabilities and equity are also growing to represent the financing of those assets.

NMIMS MBA Financial Accounting Solved Answer Assignment

Question 2: Prepare a vertical balance sheet from the following information: (10 Marks)

Introduction

A financial statement, a vertical stability sheet, summarises the status of a corporation’s economic function over a certain length and offers the statistics in a sheer style. Some companies use vertical stability sheets. On this precise model of the company’s balance sheet, the business’s property, liabilities, and equity are all shown in one column for the reader’s ease.

Concept and application

The part of the stability sheet labelled “assets” includes information on all the company’s assets, such as coins, investments, and assets, among other matters. In a traditional asset table, the most liquid assets, such as cash and brief-term investments, are positioned on the top, observed by long-term investments and belongings. In the desk of belongings, properties are often arranged in a way that is downward in terms of the diploma of liquidity they possess. That is done to facilitate more accessible analysis.

Conclusion

In conclusion, a vertical stability sheet is an essential tool for the behavior of financial evaluation. It contributes to presenting a correct image of the current economic role of a business.

NMIMS MBA Financial Accounting Solved Answer Assignment

Question 3.a: Prepare a comparative income statement for any company extracting their P&L statement for the years 2020-21 & 2021-22. Analyse the incline and decline in the different elements in the P&L Statement and provide detailed insights.

Introduction

The sales that Apple Inc. brought in during the fiscal year 2021 were lots more than what they were the preceding yr, developing by way of 33% from what it had been.

Concept and application

also, the value of income jumped by 31% in 2021, which was most probably attributable to higher product prices and interruptions inside the delivery chain that have been created by way of the outbreak. Despite this, Apple’s gross profit climbed by 37% owing to the high benefit in sales; as a consequence, the enterprise’s gross profit margin is doing somewhat correctly. Apple’s sales were on an upward trend for quite a while. The rise in Apple’s sales is showing no signs of slowing down.

Conclusion

Notwithstanding the challenges brought on by the pandemic, Apple Inc.’s comparative income statement for the years 2020-2021 and 2021-2022 demonstrates that the company is progressing toward its goals and experiencing overall financial success. This success can be seen in the fact that Apple’s stock price also increased by 52%.

NMIMS MBA Financial Accounting Solved Answer Assignment

Question 3b: Prepare a trend analysis statement for any the same company extracting their P&L statement for the years 2019-20, 2020-21 & 2021-22. Analyse the incline and decline in the different elements in the P&L Statement and provide detailed insights.

Introduction

When we look at the trajectory of the revenue, we can see that between the years 2019 and 2021, there was consistent revenue growth, and then between the years 2020 and 2021, there was a significant surge in revenue. This surge may be ascribed to the COVID-19 pandemic, which led to a move towards remote work and boosted demand for Apple’s goods such as iPads, Macs, and iPhones.

Concept and Analysis

The pandemic also led to an increase in the number of deaths. On the other hand, the tendency indicates a marginal drop in sales in the year 2022. this is probably because of the worldwide chip shortage and different supply chain problems that are hurting Apple goods’ manufacture and availability.

Conclusion

The trend analysis of Apple’s income announcement reveals that the company’s income and gross earnings will regularly rise from 2019 to 2021 before a slight decline in 2022.

NMIMS MBA Financial Accounting Solved Answer Assignment