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1. Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
National Institute of Business Management
Chennai - 020
FIRST SEMESTER EMBA/ MBA
Subject: Financial Management
1. What are the significant factors of Financial Statements? Discuss the various tools of financial
Analysis.
Answer:. Financial analysis supports equity decisions by providing quantified evidence regarding
the financial positionand performance of the company. Accounting analysis is another component
of business analysis. Accounting analysis is the process of evaluating the extent that a company’s
accountingreflectseconomicreality. If the accountinginformationdistorts the economic picture of
the firm,decisionsmade usingthisinformation can be flawed. Thus, accounting analysis should be
performedbeforefinancial analysis. Prospective analysis is the forecasting of future payoffs. This
analysis draws on accounting analysis, financial analysis, and business environment and strategy
analysis. The output of prospective analysis is a set of expected future payoffs used to estimate
intrinsicvalue suchasearningsandcash flows.Anothercomponentof businessanalysisisvaluation,
which is the process of converting forecasts of future payoffs into an estimate of a company’s
intrinsic value.
The financial statements of a company are
2.What is a Fund Flow Statement? Discuss the uses and preparation of Fund Flow Statements.
3.What is financial Forecasting? Explain.
Answer : Financial Forecasting
Financial Forecasting describes the process by which firms think about and prepare for the future.
The forecasting process provides the means for a firm to express its goals and priorities and to
ensure that they are internally consistent. It also assists the firm in identifying the asset
requirements and needs for external financing.
For example,the principal driverof the forecastingprocessisgenerallythe salesforecast.Since most
Balance SheetandIncome Statementaccountsare relatedtosales,the forecasting process can help
the firm assess the increase in Current and Fixed Assets which will be needed to support the
forecasted sales level. Similarly, the

2. 4.Examine the various tools of Financial Analysis.
Answer: There are two keymethodsforanalyzingfinancial statements. The first method is the use
of horizontal andvertical analysis.Horizontalanalysisisthe comparisonof financialinformationover
a series of reporting periods, while vertical analysis is the proportional analysis of a financial
statement,where eachlineitemon a financial statement is listed as a percentage of another item.
Typically,thismeansthateveryline itemonan income statement is stated as a percentage of gross
sales, while every line item on a balance sheet is stated as a percentage of total assets. Thus,
horizontal analysisisthe reviewof the resultsof multipletime periods,whiile vertical analysis is the
review of the proportion of accounts to each other within a single period. The following links will
direct you to more information about
5.What is Zero Base Budgeting? Explain.
Answer:A zero-base budgetrequiresmanagerstojustifyall of their budgeted expenditures, rather
than the more common approach of only requiring justification for incremental changes to the
budget or the actual results from the preceding year. Thus, a manager is theoretically assumed to
have an expenditure base line of zero (hence the name of the budgeting method).
In reality, a manager is assumed to have a minimum amount of funding for basic departmental
operations, above which additional
6.Describe the various aspects of Zero Based Budgeting with its merits and demerits.
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