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Costing & FM paper PCC/IPCC may 2010

Nitesh Bhandari (Ca Finalist Articled Trainee) (93 Points)

10 May 2010

Hey Friends how was d paper today.. how much are u expecting?

please share your views on the paper.. :-)

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27 Replies

Nitesh Bhandari (Ca Finalist Articled Trainee) (93 Points)
Replied 10 May 2010

here are the answers for todays paper.. just tell me if iam right?

1 (III).

Max. Level = ROQ+ROL-(Minimum usage * minimum lead Time)
8000 = 5000+ A - ( {508}4days)
A = 8000 - 5000 + 1600
A = 4600

Ayyswariya RG (Knowledge Seeker) (3711 Points)
Replied 10 May 2010

paper was a bit lengthy... have to manage time properly. i was nt able to attend full paper

Ayyswariya RG (Knowledge Seeker) (3711 Points)
Replied 10 May 2010

i left that question as time was not sufficient for me

Ayyswariya RG (Knowledge Seeker) (3711 Points)
Replied 10 May 2010

i gues ur ans is right

Nitesh Bhandari (Ca Finalist Articled Trainee) (93 Points)
Replied 10 May 2010

4. PV ratio

Change in Profit / Change in sales

1000000/2500000 = 40 %

Fixed Cost

Sales = 57L

Cont = 22.8L

Profit = 7L

F.C = 15.8L

Sales Reqd for Profit of 1200000

FC+Cont shud b equal to Cont

15.8+12=40% of sale

sales = 69.5L

Nitesh Bhandari (Ca Finalist Articled Trainee) (93 Points)
Replied 10 May 2010

6. Balancesheet - ratio

Fixed Assets = 1500000

Debtors = 500000

Stock = 375000

Cash = 250000

Total = 2625000

networth = 15L/1.2 = 12.5L

SC = 12.5/1.6 = 781250

R&S = 468750

Sundry Creditors = 750000

Borrowings = 625000

Ayyswariya RG (Knowledge Seeker) (3711 Points)
Replied 10 May 2010

ya ya. i also got the same. can u tel me process a/c's

Kushal (Article) (77 Points)
Replied 10 May 2010

RTP sum

(Guest)

piz anybody tell me q.2..........................ans????????

P A N K A J (CA FINAL) (740 Points)
Replied 10 May 2010

finished goods profit 325000

Nitesh Bhandari (Ca Finalist Articled Trainee) (93 Points)
Replied 10 May 2010

Cash Flow before Tax & Depn.	345000	455000
Less : Depreciation	200000	250000
PBT	145000	205000
Tax	43500	61500
PAT	101500	143500
Add : Depn	200000	250000
CFAT P.A	301500	393500
AVF @ 12% for 5 & 6 years	3.605	4.112
Total DCFAT	1086908	1618072
Less : Investment	1000000	1500000
Net Present Value	86907	118072


Discounted Payback Period
AVF for 4 & 5 years	3.038	3.605
Cah Flow Till last but one Year	915957	1418568
Cah Flow for the last year	170950	199504

Required cash Flow for pay back	84043	81432
Average part of year	0.491623	0.408172
No. of years	4	5
Discounted Payback Period	4.491623	5.408172


AVF @ 12% for 5 & 6 Years	3.605	4.112
Total DCFAT @ 12%	1086908	1618072
AVF @ 16% for 5 & 6 Years	3.274	3.684
Total DCFAT @ 16%	987111	1449654
Difference for 4 %	99796.5	168418
Amount required in excess of 12%	86907.5	118072
Proportionate %	3.483389	2.804261
IRR	15.48339	14.80426

Since NPV is superior IRR even though higher than second
machinery for the first machinery. Second mach. Must be purchased