Management Accounting SYBAF Semester IV Manan Prakashan

Elective Courses (EC)
Content:

1. Introduction to Management Accounting SYBAF (5 Lec.)
Meaning, Features, Scope, Importance, Functions, Role of Management Accounting, Management Accounting Framework, Tools, Management Accounting and Financial Accounting

2. Analysis and Interpretation of Accounts (10 Lec.)
(a) Vertical Forms of Balance Sheet and Profit and Loss Account suitable for analysis
(b) Trend Analysis
(c) Comparative Statement
(d) Common Size Statement.
NOTE: Practical Problems based on the above (a) to (d)

3. Financial Statement Analysis : Ratio Analysis (15 Lec.)
Meaning of financial Statement Analysis, steps, Objective and types of Analysis. Ratio analysis: Meaning, classification, Du Point Chart, advantages and Limitations.
Balance Sheet Ratios :
(i) Current Ratio (ii) Liquid Ratio (iii) Stock Working Capital Ratio (iv) Proprietary Ratio (v) Debt Equity Ratio (vi) Capital Gearing Ratio
Revenue Statement Ratios:
(i) Gross Profit Ratio (ii) Expenses Ratio (iii) Operating Ratio (iv) Net Profit Ratio (v) Net Operating Profit Ratio (vi) Stock Turnover Ratio
Combined Ratios :
(i) Return on Capital employed (Including Long Term Borrowings) (ii) Return on proprietor’s Fund (Shareholders Fund and Preference Capital) (iii) Return on Equity Capital (iv) Dividend Payout Ratio (v) Debt Service Ratio (vi) Debtors Turnover (vii) Creditors Turnover

4. Cash Flow Analysis (15 Lec.)
Preparation of Cash Flow Statement with reference to Accounting Standard No. 3. (Indirect method only))

5. Working Capital Management (15 Lec.)
A. Concept, Nature of Working Capital , Planning of Working Capital
B. Estimation / Projection of Working Capital Requirement in case of Trading and Manufacturing Organization
C. Operating Cycle Practical Problems