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M/s Sespi Pvt Ltd, headquartered at Kolkata, started the business of bottling and selling Sparkling Water under the brand name of ‘Sespark Aqua’ from the beginning of 2017-18 with liquid assets worth Rs 40 crores. 

The graphs given below give various details of the operations of M/s Sespi Pvt Ltd for the five years from 2017-18 to 2021-22, at the end of every year :

The Total cost of Production in a year = The Total Fixed Cost of Production in the year + The Total Variable Cost of Production in that year

Total Profit in a year = Total Sales Revenue in the year – Total cost of Production in the year

Liquid Assets at the end of a year = Liquid Assets at the beginning of the year + Total Profit in the year 

Question

Had M/s Sespi Pvt Ltd sold all the cartons of Sespark Aqua it had produced in a year, in that year itself and no more, what would be the liquid assets of M/s Sespi Pvt Ltd at the end of 2021-22 (in Rs crores rounded to the nearest integer) ?

 

Option: 1

56


Option: 2

-


Option: 3

-


Option: 4

-


Answers (1)

best_answer

Tabulating all the data about M/s Sespi Pvt Ltd given and the added information that M/s Sespi Pvt Ltd had sold all the cartons of Sespark Aqua it had produced in a year, in that year itself and no more, and henceforth calculating, we get :

 

2017-18

2018-19

2019-20

2020-21

2021-22

Production of Sespark Aqua (in cartons)

440000/10 = 44000

540000/10 = 54000

600000/10 = 60000

480000/10 = 48000

520000/10 = 52000

Sales of Sespark Aqua (in cartons)

44000

54000

60000

48000

52000

Cumulative Unsold Stock of Sespark Aqua (in cartons)

NIL

NIL

NIL

NIL

NIL

Total Sales Revenue (Rs crores)

44000*2000 = Rs 8.8 crores

54000*2200 = Rs 11.88 crores

60000*2400 = Rs 14.4 crores

48000*2600 = Rs 12.48 crores

52000*2200 = Rs 11.44 crores

Fixed Cost of Production (Rs crores)

Rs 4 crores

Rs 3 crores

Rs 2.5 crores

Rs 5 crores

Rs 4 crores

Variable Cost of Production (Rs crores)

Rs 3.5 crores

Rs 5 crores

Rs 5.5 crores

Rs 7 crores

Rs 3.5 crores

Total Cost of Production (Rs crores)

4+3.5 = Rs 7.5 crores

3+5 = Rs 8 crores

2.5+5.5 = Rs 8 crores

5+7 = Rs 12 crores

4+3.5 = Rs 7.5 crores

Total Yearly Profit (Rs crores)

8.8 - 7.5 = Rs 1.3 crore profit

11.88 - 8 = Rs 3.88 crore profit

14.4 - 8 = Rs 6.4 crore profit

12.48 - 12 = Rs 0.48 crore profit

11.44 - 7.5 = Rs 3.94 crore profit

Liquid Assets of M/s Sespi Pvt Ltd at the end of the year (Rs crores)

40 + 1.3 = Rs 41.3 crores

41.3 + 3.88 = Rs 45.18 crores

45.18 + 6.4 = Rs 51.58 crores

51.58 + 0.48 = Rs 52.06 crores

52.06 + 3.94 = Rs 56 crores

Hence, had M/s Sespi Pvt Ltd sold all the cartons of Sespark Aqua it had produced in a year, in that year itself and no more, the liquid assets of M/s Sespi Pvt Ltd at the end of 2021-22 would be exactly Rs 56 crores 

 

Posted by

Pankaj

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