1a) The following are the Summary of Cash transactions extracted from the books of Happy Ltd.

(Rs in '000)

Balance as on 1st April, 2014 140

Receipts from Customers 11,132

Issue of Shares 1,200

Sales of Fixed Assets 512

12,984

Payments to Suppliers 8,188

Payments for Fixed Assets 920

Payments for overheads 460

Wages and Salaries 276

Taxation 972

Dividends 320

Repayment of Bank Loans 1,000

Balance as on 31st March, 2015 12,136

848

Prepare a Cash Flow Statement of the Company (Revised) for the period 31st March, 2015.

b) " Budget is an aid to management and not a Substitute for management". Comment.

c) ' Flexible Budgets' are more, realistic and useful than 'Fixed Budgets'. Do you agree ? Explain.

d) ' Incremental Revenue should be more than 'Incremental Costs', to process a product , after split-off point. Explain.

e) The imputed costs are nothing but opportunity costs. Explain.

f) The " volume-cost-profit relationship provide management with simplified framework for organizing its thinking on a number of problems." Discuss.

g) ' Knowledge of relationship among cost, volume and profit is of immense help to management'- Explain the statement highlighting the importance of cost-volume-profit analysis.