Data Interpretation Problems Quiz for RBI Grade B, Syndicate Bank PO, Canara Bank PO

Directions: Study the following information carefully and answer the questions given beside:

Operating Profit Rs. 320 lac in 2002–03
 

 
Operating Profit Rs. 260 lac in 2001–02

1
The interest in 2002-03 approximately increased over in 2001-02 by
» Explain it
A
Following the common explanation, we get
Increase =  128 – 78  × 100 ≈ 64%
78
Hence option (A) is correct.
Common Explanation:

Table-1 Operating Profit Rs. 320 lac in 2002-03
Interest 40% 128 lac
Tax 12% 38.4 lac
Retained Profit 20% 64 lac
Dividend 8% 25.6 lac
Depreciation 20% 64 lac
Table-2 Operating Profit Rs. 260 lac in 2001-02
Interest 30% 78 lac
Tax 9% 23.4 lac
Retained Profit 25% 65 lac
Dividend 8% 20.8 lac
Depreciation 28% 72.8 lac
 
2
The interest burden in 2002-03 was higher than that in 2001-02 by
» Explain it
D
Following the common explanation, we get

Required Difference = 128 – 78 = 50 lac.

Common Explanation:

Table-1 Operating Profit Rs. 320 lac in 2002-03
Interest 40% 128 lac
Tax 12% 38.4 lac
Retained Profit 20% 64 lac
Dividend 8% 25.6 lac
Depreciation 20% 64 lac
Table-2 Operating Profit Rs. 260 lac in 2001-02
Interest 30% 78 lac
Tax 9% 23.4 lac
Retained Profit 25% 65 lac
Dividend 8% 20.8 lac
Depreciation 28% 72.8 lac

3
If on an average, 10% rate of interest was charged on borrowed funds, then the total borrowed funds used by this company in the given two years amounted to 
» Explain it
B
Following the common explanation, we get

For 2001, let borrowed fund = x
 
⇒ 10% of x = 78 ⇒ x = 780
 
For 2002, let borrowed funds = y
 
 10% of y = 128 ⇒ y = 1280
 
Total borrowed funds = 780 + 1280 = Rs. 2060 lac

Hence, option (B) is correct. 

Common Explanation:
Table-1 Operating Profit Rs. 320 lac in 2002-03
Interest 40% 128 lac
Tax 12% 38.4 lac
Retained Profit 20% 64 lac
Dividend 8% 25.6 lac
Depreciation 20% 64 lac
Table-2 Operating Profit Rs. 260 lac in 2001-02
Interest 30% 78 lac
Tax 9% 23.4 lac
Retained Profit 25% 65 lac
Dividend 8% 20.8 lac
Depreciation 28% 72.8 lac

4
The dividend in 2002-03, as compared to that in 2001-02 was 
» Explain it
C
Following the common explanation, we get

Dividend is higher by  25.6 – 20.8  × 100 = 23%
20.8
Hence, option (C) is correct. 

Common Explanation:

Table-1 Operating Profit Rs. 320 lac in 2002-03
Interest 40% 128 lac
Tax 12% 38.4 lac
Retained Profit 20% 64 lac
Dividend 8% 25.6 lac
Depreciation 20% 64 lac
Table-2 Operating Profit Rs. 260 lac in 2001-02
Interest 30% 78 lac
Tax 9% 23.4 lac
Retained Profit 25% 65 lac
Dividend 8% 20.8 lac
Depreciation 28% 72.8 lac

5
The equity base of these companies remained unchanged. Then the total dividend earning by the share-holders in 2001-02 and 2002-03 is 
» Explain it
A
Following the common explanation, we get

Dividend in 2001-02 = Rs. 20.8 lac
 
Dividend in 2002-03 = Rs. 25.6 lac
 
Total dividend earning by the share-holders = Rs. (20.8+25.6) = 46.4 lac

Hence, option (A) is correct.
 
Common Explanation:

Table-1 Operating Profit Rs. 320 lac in 2002-03
Interest 40% 128 lac
Tax 12% 38.4 lac
Retained Profit 20% 64 lac
Dividend 8% 25.6 lac
Depreciation 20% 64 lac
Table-2 Operating Profit Rs. 260 lac in 2001-02
Interest 30% 78 lac
Tax 9% 23.4 lac
Retained Profit 25% 65 lac
Dividend 8% 20.8 lac
Depreciation 28% 72.8 lac