Forums
treasury and cash management
Financial Management
answered on 03-May-24 16:51
Illustration-4(video no. 14) we're taking stores and manufacturing expenses as variable costs keeping year 2 as base. but shouldn't it be the same % for year 1 also? example: year 2- stores = 12% of sales but if I compute for year 1, it's 12.5% of sales now for the computation of year 3 stores, should I take year 1 or year 2 as base?
latest answer
As there is no specific mention, we assume that stores & manufacturing expenses are based on the latest year sales and hence we took 2nd year’s data. So it’s not mandatory that like RM consumed, stores & manufacturing expenses should be purely variable. So as per the assumption, 2nd year being the latest shall be taken as base
Roobashree Rajagopal
CA Inter
★ 0
1
78
Doubt
Financial Management
answered on 28-Apr-24 13:13
Sir, In the question a point is given like this *Inflation is expected to be 6% per year Why this point is ignored and not taken into consideration
latest answer
This question is concerned with treatment of adjusting inflation with discount rate which belongs to the chapter “Risk Adjusted Capital Budgeting” which is currently not a part of the syllabus. So Please ignore
Narasimha G
CA Inter
★ 2K+
3
73
Working capital management
Financial 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
73
Leverage
Financial Management
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
82
Doubt Regarding wacc calculation
Financial Management
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?
latest answer
thank you sir :)
aravind lalji
CA Inter
★ 0
4
101
Working capital management
Financial 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
67
Dividend decisions
Financial Management
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
129
Discounted payback period
Financial Management
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
95
doubt regarding assumption taken in question
Financial Management
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
102
Capital structure
Financial Management
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
74