Fundamentals of Financial Management, Third Edition

NUMERICAL PROBLEMS

1. The following are the income statement and balance sheet of XYZ Co. Income Statement of XYZ Co. for the Year Ending 31 December, 2003.

   	Amount (Rs)	Amount (Rs)
   Net sales		30,00,000
   Less: Cost of goods sold		21,00,000
   Gross margin		9,00,000
   Less: Administrative expenses	1,00,000
   Selling expenses	95,000
   Lease payments	15,000	2,10,000
   Operating Income (EBIT)		6,90,000
   Add: Revenues on account of interest and royalty		1,500
   Operating Income plus other incomes…		6,91,500
   Less: Interest payment		27,500
   Net Income before taxes(NIBT)		6,64,000
   Less: Taxes @ 30%		1,99,000
   Net income (NIAT)		4,65,000 ...