Trimester II

Corporate Finance  (CF)

Dayanada Sagar University( DSU)

EMBA II Trimister

Date of assignment : 30^th 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)