Fin621 Fall 2011 Final Term Feb 2012 – VU Current Paper – 08 Feb 2012

1.why some analyst include deferred tax in a debt of a firm 3 marks

2.Data given and ask for total asset turnover 5 marks

3.Some data sales and net income of 1995 to 2004 is given and requirmnt is %age and usning 1995 as base year. 5 marks

4.A firm’s balance sheet consists of cash, marketable securities, receivables and inventory among other assets. Which of the following is the least valuable

ratio for the firm? Give reasons.
0. Cash ratio
1. Quick ratio
2. Current ratio 5 marks

A company wants to take a loan , this is the where you already feel difficulty in recovery of cash … company also says the change in policy to pay back loan from 190 days to 90 days, would you prefer to give a loan to such company If yes/no give your reason . 3 marks

A company takes a loan of 100,000 rupees to use in the working capital, what would be the effect of this loan on working capital , whether the company will be able to pay back it . give your logic 3marks

I purchased some stock at 50,000 and sold it in some later time at 100,000 rupees, so in this way I have earned 10% on a single entity of stock .criticize this statement 3 marks

Values were given we had to find liquidity ratios 5 mark