Financial Accounting: NMIMS Internal Assignment Applicable for Jun 2025 Examination

Financial Accounting: NMIMS Internal Assignment Applicable for Jun 2025 Examination

Q1 You are given the following partial financial information for AlphaEx Ltd. for the year ended March 31, 2024: Required

1. Compute the Cost of Goods Sold (COGS) and Gross Profit for the year ended March 31, 2024.

(2 marks)

1. Prepare the Income Statement (from Net Sales down to Net Income) for the year ended March 31, 2024. Clearly show each line item, including your calculations for Cost of Goods Sold, Gross Profit, Operating Income, and Net Income after tax.

(3 marks)

1. Calculate the ending Retained Earnings on March 31, 2024, after the company closes its Net Income into Retained Earnings. Show your computation step by step.

(2 marks)

1. Using the year-end balances, compute and interpret two financial ratios—for example, the Current Ratio and the Debt-to-Equity Ratio. In a brief paragraph, discuss what these ratios indicate about AlphaEx Ltd.’s liquidity and long-term solvency. (3 marks)

 

1. Income Statement (Partially Reported)	Amount
	(Rs.)
Net Sales:	9,00,000
Beginning Inventory (April 1, 2023):	60,000
Net Purchases:	3,20,000
Ending Inventory (March 31, 2024):	50,000
Operating Expenses (excluding depreciation):	1,40,000
Depreciation Expense:	30,000
Interest Expense:	20,000
Income Tax Rate:	25%
2. Balance Sheet (Selected Items as at March 31, 2024)
Cash & Cash Equivalents:	1,00,000
Accounts Receivable:	80,000
Inventory:	50,000
Property, Plant & Equipment (net):	4,00,000
Accounts Payable:	40,000
Long-Term Debt:	2,00,000
Common Stock:	1,50,000

 

Question 2 (A) A mid-sized manufacturing company has suffered significant losses over the past two years, casting doubt on its ability to continue as a going concern. Critically examine how the concept of going concern influences the accounting process in such a situation. In your analysis, discuss the ethical and professional judgments an accountant must make when deciding whether the business should continue applying going concern assumptions in its financial statements.

Question 2 (B) Financial accounting is based on fundamental principles and assumptions that guide the preparation of financial statements. However, with the rapid advancement of technology and the increasing complexity of modern business transactions, some argue that traditional accounting frameworks may no longer be sufficient. Critically evaluate the relevance of traditional financial accounting principles (such as the historical cost principle, accrual basis, and consistency) in today’s business environment. In your response, analyze potential modifications or alternative approaches that could enhance financial reporting accuracy and decision-making for
stakeholders.

Assignment Marks: 30

Instructions

• All Questions carry equal marks
• All Questions are compulsory
• All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3 in not more than 500 words for each subsection. Use relevant examples,illustrations as far as possible
• All answers to be written individually. Discussion and group work is not advisable.
• Students are free to refer to any books/reference material/website/internet for attempting their assignments, but are not allowed to copy the matter as it is from the source of reference.
• Students should write the assignment in their own words. Copying of assignments from other students is not allowed
• Students should follow the following parameter for answering the assignment questions

For Theoretical Answer

Assessment Parameter	Weightage
Introduction	20%
Concepts and Application	60%
related to the question
Conclusion	20%

For Numerical Answer

Assessment Parameter	Weightage
Understanding and usage	20%
of the formula
Procedure / Steps	60%
Correct Answer &	20%
Interpretation

PLEASE NOTE: This assignment is application based, you have to apply what you have learnt in this subject into real life scenario. You will find most of the information through internet search and the remaining from your common sense. None of the answers appear directly in the textbook chapters but are based on the content in the chapter