B.Com In Banking & Insurance (BCBI) Sem IV ATKT II Question Paper - Mumbai University | munotes

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1. Q2 Each Question Carries 15 marks
2. Q3 Support your Answer with Required Working Notes
3. Q1 A) Match the Column (any 8) 8 marks
4. Q1 Cash sales a. Source of working capital
5. Q2 Credit sales b. Depreciation is ignored
6. Q6 Equity source of finance
7. Q7 Debt g. Cheapest source of finance
   • B) Fill in the Blanks (any 7) 7
8. Q1 Temporary working capital is known as core working capital
9. Q3 Trade credit is a source of working capital
10. Q4 Combined leverage should be as low as possible
11. Q5 Capital expenditure process is a financial procedure
12. Q6 Financial plan should be complicated
13. Q7 Management of inventory is function of finance manager
14. Q8 ABC analysis refers to activity based analysis
15. Q2 A) Apollo Ingredients Ltd A star export house wishes to raise 2,00,00,000 for expansion project. It expects to earn 30% on its new investments before paying its interest and tax obligations The cost raising debt capital is 15%p.a while equity shares with face value of Rs 100 can be sold at 150% premium in the market. The following options are available with the company The company falls under 25% tax bracket. Determine the most feasible option The Procurement department of Sun Ltd has collected the following data for its product as [08] Calculate EOQ level and Number of orders to be placed m a year 15 marks
16. Q2 C) Moon Ltd has recorded a sales of Rs 50,00,000 in the financial year 2016-2017 and increased by 25% in the financial year 2017-2018. The variable costs continue to remain 60% of the sales while fixed cost excluding interest increases from Rs 1,00,000 to Rs 1,50,000 in the year 2017 7 marks
17. Q18 The capital structure undergoes no change and comprises of 12% Debentures of Rs 25,00,000 and Equity shares and reserves and surplus in the ratio 4:1 of Rs 25,00,000. The face value of debentures is Rs 100 while for shares it is Rs 10. The company falls under 30% tax bracket Calculate operating and financial leverages for the year 2016-17 and 2017- 18 and brief comment on same
18. Q3 A) Prepare cash budget of Sunil Gavaskar Ltd. For the months of April, May and June, 2018. You are informed that: 15 marks
19. Q1 50% of the purchases and sales are on cash
20. Q2 The average collection period of the company is % month and credit purchases are paid
21. Q3 Time lag in payment of wages is 1 month
22. Q4 Rent of Rs. 1,000.is payable every month
23. Q5 Cash and Bank balance as on March, 2018 was Rs. 3,00,000
24. Q6 Dividend received in May Rs. 36,000
25. Q7 Professional fees to be paid in June Rs. 1,500
26. Q8 Expenses are paid in the same month
27. Q3 B) Maya limited has made the following sales estimates for October, November, and December 2018 from which you are required to prepare sales budget by units and rupees for each of the three months for each Sales Area and in Total The area wise unit sales re expected as follows, The selling price has been fixed at Rs. 6 per unit in Area A. Rs. 8 per unit in Area B, Rs. 12 per unit in Area D, and Rs. 10 per unit in Area C
28. Q4 A) Angad Ltd currently wishes to increase its sales by following liberal credit policies. The is asked to evaluate the following credit polices with the help of information provided below — Credit Period- 3 by 1 month by 2months The required rate of return is 35%. Calculate opportunity cost on variable cost only 15 marks
29. Q4 B) The Financial Officer of Phantom Ltd. requests you to prepare a statement showing the requirements of working capital for a forecast level of 1,00,000 units .Following information is 15 marks
    • b) Raw material in stock Average 1 month
    • c) W.LP average 1.5 month assume labour and overheads to be 40%
    • d) Finished goods in stock average 1 month
    • e) Credit allowed to debtors average 2 months
    • f) Credit allowed by suppliers average 1.5 month
    • g) Cash at Bank is expected to be Rs.75,000 Find out MPBF under all methods suggested by Tandon committee
    • A) Discuss the factors determining the working capital needs of a trading organization. 8
    • B) Discuss the functions of strategic financial management. Write short notes on: (any three) [15] 7
30. Q2 Operating Cycle
31. Q3 Trading on Equity
32. Q4 Certificate of Deposits
33. Q5 Motives for holding cash

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