MCom Part II SEM IV 2018 2019 Dec 2019 ATKT ADVANCED ACCOUNTANCY COURSE III ADVANCED FINANCIAL MANAGEMENT Question Paper - Mumbai University | munotes

Questions asked in this paper

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1. Q2 Working notes and assu from part of your-answer
2. Q3 Use of simple calculator js
3. Q1 (A) Abhinav and Raghav Industries Ltd, is considering two projects investments either. Rs. 495 lakhs in fully automatic machines or Rs. 350 lakhs machine. The before depreciation and income tax for next 5 years of depicted below of Rs. 1 @ 10% for 5 years LES 10% discount | ( Rs. in Both the machines have realizable equivalent to their'written-down value at the end of fifth year. The company provides depreciation down value basis and pays income tax @ are Net Present and Profitably Index of each Note: 1. required to do ‘all upto places required comments as proposal should be chosen by the Sain fully oF machine. Both the machines have scrap value at the years to their written down value. The expected profits before depreciation follows: valué of Rs 1 @ 10 % rate for 8 years profits before depreciation and Income Tax The company provides depreciation on Machinery @ 15 % p.a. on written-down value basis and income tax @ 39%. You are required to calculate:- Net Present Value (NPV) and Profitability Index each projects @ 10% discounting factor Note:1, You are required to calculations upto two \ 15 marks
4. Q2 required to offer your comments as to should be chosen AS Management for investment
5. Q2 (A) Alfa Enterprise requires 90,900 units of a certain item annually, The cost per unit is Rs 3, Purchase order Rs. 300 and the inventory carrying cost RS 6 unit per year,
   • i) What is the Economic Order Quantity :
   • ii) What shouid the firm do if the suppliers offers discount as below: 4
   • (B) A firm Purchases 2,000 units of a particulars items per year at an The ordering cost is Rs. 50 per order and the is 259%. Determine the Economic order quantity and the ‘fa 3% discount is offered by the purchase of 1,000 units, Should the firm accept the
6. Q3 (A) Sujhata Garments réadymade garments and credit basis through a 1 network dealers. its Present sale is 60 lakhs perannum with credit period. The company is contemplating the credit period with a view to sales. Present variable costs are 70% of sales and total fixed costs Rs: annum. expected pre- tax return on investment on average investment in.receivable.at Total Cost). Some other details are given credit period y “sales (Rs. in lakhs) Which the company Assume 360 days a year. Calculations should be made upto Apple Utd. preparé theicash budget of the company for the three months from July to 15 Septem Youaregiven ‘the following information,
   • Q.P. Code
   • a) Sales are 20% cash and the balance at two months credit. "4 b) Purchase are at one month’s credit subjects to a cash discount of
   • c) Wages are paid 1/2 months in arrear and other expenses are paid one month in
   • d) During August 2016 the company pays a dividend of 15 %on its equity capital of RS during September 2016 paid installment of Rs. =
   • e) Itis expected that at the end of June, 2016 there will balance of
   • (A) State whether the following statements are True or False. 08
7. Q1 Interest on debentures is a tax
8. Q2 Capital budgeting is done to evaluate short term: investment proposals
9. Q3 Permanent working capital is the maximum capital that must be maintained
10. Q4 Stock of finished goods should be cost of production
11. Q5 Reduced payment of dividend improves-liquidity. >
12. Q6 Raw materials is not a part of inventory
13. Q7 Default cost is the cost of
14. Q8 Depreciation is an internal source offinance
    • (B) Match the following: 07 Possession of with:the borrower Equity share capital of @ of Current Liabilities over Current Cost of storage
15. Q4 fany Three) 15 marks
    • iii) securities for holding inventories:

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