MCom Part II SEM IV 2022 2023 Jun 2023 ADV.ACCTG.CORP.ACCT & FIN. MGMT FINANCIAL MANAGEMENT Question Paper - Mumbai University | munotes

Questions asked in this paper

• 2. Figures to the right indicate full marks

1. Q3 Working note should be part of answer
2. Q1 The following information is taken from functional budgets of ABC Ltd. You are required to prepare a cash budget for three months ending 31*t March, 2023 where Cash and Bank balance on 1* January, 2023 is expected to be Rs. 25,000 15 marks
3. Q1 Credit extended by the Creditors is 2 months
4. Q2 Time Lag in payment of Administrative Overheads and Selling overheads are 1/2 month and 1/4 month respectively
5. Q3 Credit terms are Sales/Debtors - 20% sales are on cash; half of the credit sales are collected next month and the balance half in the following month
6. Q4 Plant at a cost of Rs. 1,00,000 will be installed in November, 2022. The installments of Rs. 5,000 p.m. are payable from January, 2023 onwards
7. Q5 Annual Dividend at a rate of 5% p.a. will be paid on Ist March, 2023 to shareholders with shareholdings of Rs. 3,80,000 whereas on the same date Interest on investment Rs. 14,000 is to be received B Company produces 2,160 units (at 90% capacity) and the following expenses are 15 Prepare Flexible Budget for 80% and 100% capacity utilization / Subject Code: 67511 Advanced Accounting, Corporate Accounting and Financial Management: Financial Manag Ramkrishna Manufacturing is considering a proposal for investment. The details 15 available are as follows The annual cash flow and PV Factor @12% are Year PV Factor @ | Inflow before depreciation and tax Depreciation is chargeable @ 20% under Straight line method Evaluate the proposal under Net Present Value method Enterprises is in the process of expansion of its manufacturing capacity. 15 For this purpose, it is comparing between two mutually exclusive proposals Machine P & Q. The information available is as follows Realisable value at the end of useful life 50,000 Advice the management in finalization of the proposal using Net present value method. Present value factor @ 9% is / Subject Code: 67511 Advanced Accounting, Corporate Accounting and Financial Management: Financial Manag DBJ Ltd has average annual turnover of Rs.12,00,000 and average collection 15 period of 30 days. The company wants to experiment with different credit policies to improve the profitability. From the following information, suggest the suitable policy to increase the profit level of the company Required rate of return on investment is 25% (considering debtors at selling price). Selling price per unit is Rs.50 and variable cost is 70% of selling price Assume 360 days a year for calculation purpose Cost of placing an order Rs.120 Cost of processing an order Rs.130 Cost of storage per unit per annum 50% of cost of material Calculate EOQ using formula and table method considering order size of 40,000 units, 20,000 units, 8,000 units, 5.000 units and 2,000 units Choose the correct alternative and fill in the blanks 8
8. Q1 Internal Rate of Return is the rate of interest at which
   • i. Net Present Value is maximum
   • ii. Net Present Value is zero ili. Pay back period is zero
   • iv. Pay back period is minimum
9. Q2 Inflow before tax is Rs.80,000. Tax rate is 30%. Inflow after tax =
   • iv. Rs. 80,000
10. Q3 Increase in credit period from creditors will result in
    • i. Increase in working capital
    • ii. Increase in inventory
    • iii. Decrease in working capital requirement
    • iv. Decrease in inventory
11. Q4 is suitable source of finance for working capital requirements
    • i. Issue of debentures il. Issue of preference shares / Subject Code: 67511 Advanced Accounting, Corporate Accounting and Financial Management: Financial Manag
12. Q5 In ABC analysis, A items are
    • i. Large in quantity but cheap in price
    • ii. Small in quantity but costliest ili. Moderate in quantity and moderate in price
    • iv. Large quantity and costliest
13. Q6 Ageing schedule is related with
14. Q7 budget considers different levels of output
    • i. Master budget
15. Q8 EOQ is related with
    • i. Inventory management
16. Q4 State whether the following statements are True or False 7 marks
17. Q1 Capital Rationing is caused by both internal and external factors
18. Q2 Credit standards are termed as the standards minimum requirements for granting credit
19. Q3 Excessive inventory creates a shortage of cash
20. Q4 Lag in payment of overheads increases working capital requirement
21. Q5 Performance of any organization depends on critical management
22. Q6 Strategic Financial Management does not include strategic investment
23. Q7 Tax saving on retrenchment compensation is treated as cash inflow
24. Q4 Write Short Notes on (Any Three) Types of Budgets B_ Purpose of Capital Budgeting Long Term Sources of Finance E Techniques of Inventory Management 15 marks

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