Solution to ipcc fm november 2014 paper

@ Aksh*t bajaj, u can see it is a typing mistake. the answer is taken considering 10 days and 20 days only. Secondly, I have already mentioned that in the absence of information, i have assumped opportunity cost @ 10%. If u dont assume it, there is no question of opportunity cost. Not even on sales.

@ Raman Bhatia.. Even though long term debts are given nil, if u follow all other instructions, ur balance sheet will not tally as Net worth is given as 90% of Fixed assets. There is mistake in the question. thats why bal. figure taken as debt.

@ sadique Ahmed it is at 50% Rs. 7,50,000 and at 60% Rs. 3,31,200

@ Arpit Jain... it is a mistake in the paper

@ Shardendu Pathak... yes, ur observation is correct. But Operating and finance lease are not there in FM so I thought it must be the mistake and I considered it as Operating and Financial leverage. If u take it as it is, u can apply AS 19 to write the answer

Regards,

@ Ankit ....Reserves and surplus is the part of net worth. the question has already mentioned that it is 25% of equity capital. So this assumption will not work