The following data pertains to ABC Ltd. Liabilities Amount (₹) Assets Amount (₹) Equity 45,00,000 Net Fixed Assets 24,60,000 Long Term Debt…
CA Final · Advanced Financial Management · MTP · November 2026
The following data pertains to ABC Ltd. Liabilities Amount (₹) Assets Amount (₹) Equity 45,00,000 Net Fixed Assets 24,60,000 Long Term Debt 13,30,000 Current Assets: Current Liabilities: Cash 3,48,000 Accounts Payable 1,25,000 Bills Receivable 16,98,000 Outstanding Exp. 45,000 Closing Stock 14,94,000 60,00,000 60,00,000 Income Statement for the year ending 31.03.2025 Particulars Amount (₹) Sales 1,35,80,000 Less: COGS 74,70,000 Gross Profit 61,10,000 Less: Indirect Exp. 33,95,000 EBIT 27,15,000 Less: Interest 1,50,000 EBT 25,65,000 Less: Tax @ 42% 10,77,300 EAT 14,87,700 In the next year it is expected that there will be an increase in Sales by 15% and interest amount shall remain unchanged. Based on the above information, answer the following questions.
Suggested Answer and Working Notes:
Correct Answer: Option (C)
The company may resort to External Funding Requirements to sustain the higher growth.
Topics: Financial Policy & Corporate Strategy
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