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Q1) The balance sheet of Mohan Foods Ltd. at the end of year 2017 which is just over is given below: In Lac. Liabilities &

Q1) The balance sheet of Mohan Foods Ltd. at the end of year 2017 which is just over is given below:

In Lac.

Liabilities & Capital Amount Assets Amount
Share capital 50 Fixed assets 130
Retained earnings 60 Inventories 90
Long-term borrowings 80 Receivables 80
Short-term borrowings 60 Cash 20
Trade creditors 50
Provisions 20
Total 320 320

The sales for the year just ended were Rs 400 lac. The expected sales for the year 2018 are Rs. 500 lac. The profit margin is just 5 percent and the dividend payout ratio is 50 percent.

Required: Determine the external funds requirements for Mohan Foods Ltd. for the year 2018.

Q2) Raja deposits Rs. 10,000 in a bank today. The interest rate is 10 percent and compounding is done semi-annually. What will the deposit grow to after 10 years if, the inflation rate is 8 percent per year? What will be the value of the deposit after 10 years in terms of the current rupee?

please answer both questions

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