MRF, the leading automobile tyre manufacturing company has presented the Balance Sheet and Incame Statement of two years. Using the information given balow and additional information providod in the question, answer the following questions. You can prepare Du Pont Charl using the Template provided and keep it ready before answering the questions. Balance Sheet; MRF Ltd: Year 2016 Year 2015 Balance Sheet Shuruhulduru 407183.30 370845.80 Fund Non-current 90654.0) 93416.60 Liabilities Current 172869.80 101775.20 Liubililies Total Capital 970697.10 and Llebilities 869097.60 Fixed Assets 76685.90 70814.00 Úther Non- 231175.00 205215.10 CLurrent Assete Total Non- 307861.50 285029. 10 purrent Assets Current Aanete 662835.60 584008.50 Total Assete 970697.10 869037.60 Profit and Lonn Statement MRF Ltd: Year 2016 Year 2015 Profit and LOe Statement Revenue 621855.80 593007.80 Operating DXpenoen 536088.30 505295.40 Profit Before 85767.50 47712.40 Depreciation, Inereat and Taxes Depreciation 1ona1.50 Profit Before 75/78.70 776N0.90 In:erest and Tuxus Intereul 14400.40 14190.30 Expennen Profit Before 612H8.30 63440.60 Тахев Taxes 13776.50 16150.10 Profit Alter 47511.80 16990.20 Тах
MRF, the leading automobile tyre manufacturing company has presented the Balance Sheet and Incame Statement of two years. Using the information given balow and additional information providod in the question, answer the following questions. You can prepare Du Pont Charl using the Template provided and keep it ready before answering the questions. Balance Sheet; MRF Ltd: Year 2016 Year 2015 Balance Sheet Shuruhulduru 407183.30 370845.80 Fund Non-current 90654.0) 93416.60 Liabilities Current 172869.80 101775.20 Liubililies Total Capital 970697.10 and Llebilities 869097.60 Fixed Assets 76685.90 70814.00 Úther Non- 231175.00 205215.10 CLurrent Assete Total Non- 307861.50 285029. 10 purrent Assets Current Aanete 662835.60 584008.50 Total Assete 970697.10 869037.60 Profit and Lonn Statement MRF Ltd: Year 2016 Year 2015 Profit and LOe Statement Revenue 621855.80 593007.80 Operating DXpenoen 536088.30 505295.40 Profit Before 85767.50 47712.40 Depreciation, Inereat and Taxes Depreciation 1ona1.50 Profit Before 75/78.70 776N0.90 In:erest and Tuxus Intereul 14400.40 14190.30 Expennen Profit Before 612H8.30 63440.60 Тахев Taxes 13776.50 16150.10 Profit Alter 47511.80 16990.20 Тах
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
An assessment of leverage effect on MRF’s profitability shows?
A. Positive Effect in 2015 and negative effect in 2016
B. Positive Effect in 2016 and negative effect in 2015
C. Positive Effect in both 2015 and 2016
D. Negative Effect in both 2015 and 2016
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