Corporate Finance  (CF)

Dayanada Sagar University( DSU)

EMBA II Trimister

Date of assignment : 30th July 2020 

1)      MassMutual Ltd presents its balance sheet as on 3.31.2020 and 3.31.2019 ( 15 marks)

 

Balance Sheet

3.31.2020

3.31.2019

Sources of  Funds

 

 

Shareholder funds

2,377

1,472

Loan Funds

3,570

3,083

                                                            5,947                                                  4,555

Application of funds

Fixed assets

3,466

2,900

Cash and Bank Balance

489

470

Debtors

1,495

1,168

Stock

2,867

2,407

Other Current assets

1,567

1,407

Less Current Liability

(3,937)

(3,794)

 

5,947

4,555

 

Income Statement of the MassMutual Limited for  year ended is as follows

Income Statement

 

3.31.2020

3.31.2019

Sales

22,165

13,882

Less Cost of goods sold

(20,860)

(12,544)

Gross Profit

1,305

1,308

Les Selling , general and admin expenses

(1,135)

(752)

EBIT(Earnings Before Interest and Tax)

170

586

Less Interest Expenses

(113)

(105)

Profit Before tax

57

481

Less Tax                                         (23)                                                 (192)

Profit after Tax( PAT)              34                                                          289

 

Prepare

1)     Cash Flow Statement

2)     Inventory turn over ratio

3)     Financial Leverage

4)     Return on Investment

5)     Current Ratio and Quick ratio

6)     Debtor turn over ratio

7)     Gross Profit ratio

8)     Working capital ratio

9)     Return on Equity ( ROE)

10)  Average collection period

 

2)     Bring out distinction between Profit maximisation and Wealth maximization with some of the live examples  by the company to maximise wealth of shareholder ( 5 marks)

3)     State role of CFO Chief Financial Officer in MassMutual limited ( 5 marks)