Virtual Study Solutions: MGT201 GDB

MGT201 GDB No 1 Solution Spring 2018

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<span style="font-family: "verdana" , sans-serif;">MGT201 GDB No 1 Spring 2018</span></h3>
<span style="font-family: "verdana" , sans-serif;">Dear Students, Here you can read or Download <b>MGT201 - </b></span><span style="font-family: verdana, sans-serif;"><b>Financial Management </b></span><span style="font-family: "verdana" , sans-serif;"><b>GDB No 1 Solution</b> and Discussion of Semester <b>Spring 2018</b>. We are here to facilitate your learning and we do not appreciate the idea of copying or replicating solutions. <b>MGT201</b> <b>GDB Solution File</b> has been added. </span><span style="font-family: Verdana, sans-serif;">Previously we added <a href="https://virtualstudysolutions.blogspot.com/2017/05/mgt201-gdb-no-01-solution-spring-2017.html">MGT201 GDB no 01 Solution Spring 2017</a>.</span><br />
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<tr><td class="tr-caption" style="text-align: center;"><span style="font-family: Verdana, sans-serif;">MGT201 GDB No 1 Solution and Discussion Spring 2018</span></td></tr>
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<span style="font-family: Verdana, sans-serif;">MGT201 GDB Topic: </span></h4>
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<span style="font-family: Verdana, sans-serif;">“Capital budgeting techniques”</span><h3 style="text-align: left;">
<span style="font-family: "verdana" , sans-serif;">MGT201 GDB Question:</span></h3>
<span style="font-family: Verdana, sans-serif;">Suppose you are a new employee in the finance department of a well-known firm. Management of the firm has assigned you a task to select a Plan on the basis of Profitability index (PI) criterion (one of the capital budgeting techniques). Management has given you two alternate plans; Plan A with old technology and Plan B with new technology. Primarily both plans have identical life and interest rates, but with the use of new technology the initial investment of the plan B will increase by 14% (compared to Plan A) while its cash inflows will increase by 10% each year (compared to Plan A).</span><div>
<span style="font-family: Verdana, sans-serif;"><br /></span><table style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border-collapse: collapse; border-spacing: 0px; border: none; color: black; font-size: 16px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><tbody style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
<tr style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><td style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<strong style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Verdana, sans-serif;">Particulars</span></strong></div>
</td><td style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<strong style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Verdana, sans-serif;">Plan A (Amount in Rs.)</span></strong></div>
</td><td style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<strong style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Verdana, sans-serif;">Plan B (Amount in Rs.)</span></strong></div>
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<span style="font-family: Verdana, sans-serif;">Initial investment</span></div>
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<span style="font-family: Verdana, sans-serif;">500,000</span></div>
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<span style="font-family: Verdana, sans-serif;">?</span></div>
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<span style="font-family: Verdana, sans-serif;">Cash flow year 1</span></div>
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<span style="font-family: Verdana, sans-serif;">120,000</span></div>
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<span style="font-family: Verdana, sans-serif;">?</span></div>
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<span style="font-family: Verdana, sans-serif;">Cash flow year 2</span></div>
</td><td style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif;">216,000</span></div>
</td><td style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif;">?</span></div>
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<span style="font-family: Verdana, sans-serif;">Cash flow year 3</span></div>
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<span style="font-family: Verdana, sans-serif;">300,000</span></div>
</td><td style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif;">?</span></div>
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<span style="font-family: Verdana, sans-serif;">Interest rate per annum</span></div>
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<span style="font-family: Verdana, sans-serif;">10%</span></div>
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<span style="font-family: Verdana, sans-serif;"><br /><ul style="text-align: left;">
<li><b>Based on above given information about Plan A;</b> complete the table for plan B.</li>
<li><b>Calculate PI of both projects</b> (Complete Calculations of PI for both projects is mandatory as it carries marks; marks will be deducted on providing just answers)</li>
<li><b>Based on calculations of PI which plan you will suggest and why?</b>(Your selection should be supported with logical reasoning; no marks will be given on just selection of the project)</li>
</ul>
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<span style="font-family: "verdana" , sans-serif;">MGT201 GDB No 1 Solution Spring 2018</span></h3>
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MGT201 GDB No 1 Solution Spring 2018

MGT201 GDB No 1 Spring 2018 Dear Students, Here you can read or Download MGT201 - Financial Management GDB No 1 Solution and Discussi...

MGT201 GDB no 01 Solution Spring 2017

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<span style="font-family: "verdana" , sans-serif;">MGT201 GDB No 1 Spring 2017</span></h3>
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<span style="font-family: "verdana" , sans-serif;">Here we have<b> MGT201</b> - Financial Management <b>GDB no 1</b> Solution <b>Spring 2017</b>. MGT201 GDB Last Date</span><span style="font-family: Verdana, sans-serif;"> is Monday, May 08, 2017. </span></div>
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<tr><td class="tr-caption" style="text-align: center;"><span style="font-family: Verdana, sans-serif;">MGT201 GDB no 01 Solution Spring 2017</span></td></tr>
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<span style="font-family: "verdana" , sans-serif;"><br /></span><span style="font-family: Verdana, sans-serif;"><b>Recommended :</b> <a href="http://virtualstudysolutions.blogspot.com/2017/05/mth202-assignment-no-1-solution-spring-2017.html">MTH202 Assignment No 1 Solution Spring 2017</a></span><div>
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<span style="font-family: Verdana, sans-serif;">MGT201 GDB Topic:</span></h3>
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<span style="font-family: Verdana, sans-serif;">Analysis of Financial Statements</span><h3 style="text-align: left;">
<span style="font-family: Verdana, sans-serif;">MGT201 GDB Discussion Question:</span></h3>
<span style="font-family: Verdana, sans-serif;">Sehgal Manufacturers is facing an issue of managing its working capital needs, management is worried about financing of daily operations. Although sales of company have an increasing trend but still company is facing shortage of cash. Liquidity analysis of the company’s financial data showed that company has current ratio of <b>1.3:1</b> and management wants an improvement in the current ratio. Financial manager of the company has suggested following two alternatives:</span></div>
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<span style="font-family: Verdana, sans-serif;"><ul style="text-align: left;">
<li>Acquiring short term loan of Rs. 100,000 at 12% annual interest rate</li>
<li>Reducing current liabilities by paying off short-term debt of Rs. 200,000 using marketable securities (Ignore gain or loss on sale of marketable securities)</li>
</ul>
</span><div>
<span style="font-family: Verdana, sans-serif;">Following information has been extracted from the financial statements for the analysis:</span><div align="center" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
<table border="0" cellspacing="0" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border-collapse: collapse; border-spacing: 0px; border: none; font-size: 16px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><tbody style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;">
<tr style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="173"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Verdana, sans-serif; font-size: small;">Particulars</span></b></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="103"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Verdana, sans-serif; font-size: small;">Rs.</span></b></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="158"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Verdana, sans-serif; font-size: small;">Particulars</span></b></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="83"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<b style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><span style="font-family: Verdana, sans-serif; font-size: small;">Rs.</span></b></div>
</td></tr>
<tr style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="173"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">Cash</span></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="103"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">200,000</span></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="158"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">Account payable</span></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="83"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">100,000</span></div>
</td></tr>
<tr style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="173"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">Fixed assets</span></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="103"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">1,500,000</span></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="158"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">Accruals</span></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="83"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">150,000</span></div>
</td></tr>
<tr style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="173"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">Inventory</span></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="103"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">150,000</span></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="158"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">Short term debt</span></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="83"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">250,000</span></div>
</td></tr>
<tr style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="173"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">Net Income</span></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="103"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">725,250</span></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="158"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">10-year Bonds</span></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="83"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">150,000</span></div>
</td></tr>
<tr style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;"><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="173"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">Account receivables</span></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="103"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">100,000</span></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="158"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">Marketable securities</span></div>
</td><td il_cc1="1" il_cc2="1" style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin: 0px; outline: 0px; padding: 0px; vertical-align: baseline;" valign="top" width="83"><div style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; border: 0px; margin-bottom: 5px; margin-top: 5px; outline: 0px; padding: 0px; vertical-align: baseline;">
<span style="font-family: Verdana, sans-serif; font-size: small;">200,000</span></div>
</td></tr>
</tbody></table>
</div>
<span style="font-family: Verdana, sans-serif;"><br /><b>You are required to discuss the impact of each alternative on current ratio</b> (calculations of current ratio in both cases is mandatory as working carries marks) <b>and suggest which option company should select to improve the current ratio without pushing up its liabilities?  Provide reason to support your selection.</b></span></div>
<div>
<span style="font-family: Verdana, sans-serif;"><b><br /></b></span></div>
<div>
<span style="font-family: Verdana, sans-serif;"><b>Recommended</b> : <a href="http://virtualstudysolutions.blogspot.com/2017/04/cs201-assignment-no-1-solution-spring-2017.html">CS201 Assignment No 1 Solution Spring 2017</a><b><br /></b></span><h3 style="text-align: left;">
<span style="font-family: Verdana, sans-serif;">MGT201 GDB IMPORTANT NOTE:</span></h3>
<span style="font-family: Verdana, sans-serif;">You are required to provide complete calculations along with formulas, otherwise marks will be deducted. Also avoid unnecessary details.</span></div>
<h4>
<span style="font-family: Verdana, sans-serif; font-size: large;">MGT201 GDB no 01 Solution Spring 2017</span></h4>
<span style="font-family: Verdana, sans-serif;"><div>
This is the idea solution for Mgt201 gdb no 1. MGT201 Gdb is very easy. am going to share some helping ideas hope rest you can do.</div>
<h4 style="text-align: left;">
<span style="font-family: Verdana, sans-serif;">MGT201 GDB no 01 Solution Idea</span></h4>
Current ratio means only current assets and current liabilities so first of all exclude net income and 10 year bonds because of longer maturity time period these are not the part of the current liabilities. Sum up all the current assets and current liabilities and divide in each of the case, remember we have to choose the option without pushing up liabilities, and when we choose the first one by raising short term loan its mean we are increasing our liabilities, so in the simple way sehagal can improve current ratio by adopting the 2nd option.</span></div>
<h4 style="text-align: left;">
<span style="font-family: Verdana, sans-serif;">MGT201 GDB no 01 Solution hints:</span></h4>
<span style="font-family: Verdana, sans-serif;"><b>case (1) </b><br />Total C.A = 650,000 + 100,000 = 750,000<br /><br />Toatal C.L = 500000 + 100,000 = 600,000<br /><br />Current ratio = 750/600 = 1.25<br /><br /><b>Case (2)</b><br /><br />Total C.A = 450,000<br /><br />Total C.L  = 300,000<br /><br /><br />Current ratio = 450/300 = 1.5</span><h4 style="text-align: left;">
<span style="font-family: Verdana, sans-serif;">MGT201 GDB no 01 Solution:</span></h4>
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<span style="font-family: Verdana, sans-serif;">Solution file Link will be added Soon.</span></div>
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MGT201 GDB no 01 Solution Spring 2017

MGT201 GDB No 1 Spring 2017 Here we have MGT201 - Financial Management GDB no 1 Solution Spring 2017 . MGT201 GDB Last Date is Mond...

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