B.Com In Investment Management SEM IV 2018 19 May 2018-19 INV. MGT FINANCIAL MGT Question Paper - Mumbai University | munotes

Questions asked in this paper

1. Q2 Working Notes should form part of your answer
2. Q3 Figures to the right indicate full marks Q-1) (A) Choose the correct alternative: (Any eight) (08)
3. Q1 EOQ stands for
   • b) Economic Order Quantity d) None of these
4. Q2 A budget manual is most likely to include
   • a) responsibilities of persons engaged in budgetary control
   • b) routine of budgetary control
   • c) forms and records required for budgetary control
   • d) All of the above
5. Q3 overheads are excluded while computing the value of WIP
   • b) Factory Overheads d) None of these
6. Q4 Variable Cost is varies in direct proportion
   • a) Profit c) Cost of Production
   • b) Sales d) None of the above
7. Q5 While calculating Working Capital, Stock of are valued at total cost price
   • b) Work in Progress d) None of these
8. Q6 Contribution is calculated as
   • b) Sales —Total Cost d) None of these
9. Q7 indicates the number of times inventory is sold during the year
   • b) Stock Turnover Ratio d) None of these
10. Q8 EPS is
    • b) Earnings Per Statement d) None of these
11. Q9 Leverage is the combination of operating and financial leverage
    • a) Financial b) Operating c) Combined d) None of these
12. Q10 Budget is a summary of all functional budgets Match the columns: (Any seven) (07)
13. Q1 Budget which is designed to remain unchanged irrespective of the a. Precautionary level of capacity. b. CA>CL
14. Q2 Budget which is established for use unaltered over a long period of c. CA<CL
15. Q5 Debentures g. Creditors
16. Q9 Motive for holding Cash j. Fixed Dividend
17. Q10 Cash Budget Q-2) Prepare an analytical statement a Company from the following information. (15) Calculate the degree of
    • (i) Operating Leverage Fixed Cost (Rs. In lakhs) 3 3 4 4 P/V Ratio is 30%. Required return on additional investments @ 20%. Evaluate each of the above proposals and recommend the best credit period for the company Q-3 From the following details of Technology Ltd, prepare a cash budget for the 3 months (15) commencing from April, 2018
    • (a) Cash Sales are 25% of total sales
    • (b) 50% of the credit sales are collected in the month and the balance in the next month
    • (c) Credit Period allowed by suppliers is a month
    • (d) Balance on 1“ April, 2016 is expected to be Rs. 15,000
    • (e) Interest from investment Rs. 2,000 expected in May and June, 2016
    • (f) Income Tax to be paid in the month of June Rs. 5,000 Q-3) ABC manufacturing company produces 7,500 units by utilizing its 75% capacity, supplies (15) you the following cost information: Cost Information at 75% Capacity Utilisation for (7,500 units)
18. Q1 Direct material, direct labour and direct expenses are variable cost
    • ii) Factory Overheads per unit increases by 10%, if capacity utilization goes down below the 75% and decreases by 15%, if capacity utilization goes up above the 75% Office overheads are fixed overheads
    • iv) Selling Overheads per unit increases by 20%, if capacity utilization goes down below the 75% and decreases by 25%, if capacity utilization goes up above the 75%
    • v) It is the policy of the company to charge profit at 20% on selling price You are required to prepare a flexible budget at 50%, 75% and 100% capacity utilization Q-4) Mohan Ltd. had an annual sales of 50,000 units at Rs 100 per unit. The company works for (15) 50 weeks in the year. The cost details of the company are given below:
19. Q1 The company has the practice of storing raw materials for 4 weeks requirements The wages and other expenses are paid after a lag of 2 weeks ili) Further the debtors enjoy a credit of 10 weeks and company gets a credit of 3 weeks
    • iv) The processing time is 2 weeks and finished goods inventory is maintained for 4 weeks From the above information prepare a working capital estimate Q-4) Prepare Sales Budget from the following information: (15) Q-5) (a) What are the factors affecting working capital requirements? (08)
    • (b) Explain the factors determining cash needs. Q-5) Write short notes on: (Any three) (15) 1). Advantages of Material Control 7
20. Q2 Short terms sources of finance
21. Q3 Cash Management
22. Q4 Operating Cycle

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