Master of Commerce (M.Com.) Part II SEM IV 2016 2017 May 2017 II FINANCIAL MGT Question Paper - Mumbai University | munotes

Questions asked in this paper

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1. Q2 Working notes and assumptions Should from part of your answer
2. Q3 Use of simple calculator is allowed
3. Q1 Money LTD. Has anticipated sales as under January to March Rs. 2,00,000 April to August Rs. 2,00,000 September to December Rs, 1,00,000 The material cost is 25% and Labour cost js 15% of sales. The Production overhead 20% ‘of sales commission is 5% on sales and general Overheads are@ 10% The credit Period for sales months The minimum cash balance is Rs, 25,000, Irregular Payments (a) income tax June, September and December @ Rs. 25,000 (b) Dividend Rs; 1,00,000 jn August. (c) Interest on borrowing Rs, 50,000 in September Prepare cash budget for April to September, SKY Ltd. is considering purchase of a machine. Two Machines ‘RAIN’ and ‘FOREST’ are available. Companies 15 cost_of capital js 12%. Details of the Machines are as follows: Cost of Machine Rs. 10,00,0G0 Rs.15,00,000 Depreciation and Tax Depreciation is to be charged. on Straight line basis you are required to calculate: - 1, Discounted Pay-back period and 2: Net present value The present value factor of Rs. tare as follows: 15 marks
4. Q2 has a Present annual sales of Rs. 30,00,000 It is currently extending 30 days Credit to the dealers. felt that sales up considerably if the dealers are willing to carry increased stocks, but the dealers have difficulty in financing their inventory, The firm is, therefore considering shift in credit policy “The following information is Supplied. x 1.Present average collection period is 30 days, 15 marks
5. Q2 is 40% Of sales Fixed cost is Rs 1,50,000 p.a Required (Pre tax) return on investment is 10% Assuming that 1 year = 360 days,
   • Q.P. Code :05070 Which of the above proposals would you recommend to the company to accept?
6. Q2 BABU LTD. desires to estimate working capital requirement for year 2017-18 expected 7,20,000 unit. The cost structure for the company is as follows: The other data is as follows:
7. Q1 30% of the sales is on cash basis and'15% of the purchases is on cash basis
8. Q2 The stock holding of materials is of 3 months
9. Q3 Processing period is of 2 months
10. Q4 Finished goods remain.in the store for 1 month
11. Q5 Credit allowed to debtors is 2 months
12. Q6 Credit allowed by 1 months
13. Q7 Time lag of wages is 2 months,
14. Q8 Overheads are paid 2 months in advance
15. Q9 Cash balance Rs; to be maintained
16. Q10 Production and overheads accrue evenly throughout the year
17. Q11 Calculate amount of debtors at selling Price
18. Q12 Estimate the amount of working capital requirement
19. Q13 Calculate, Maximum permissible bank finance under First and second method of financing as per
20. Q3 A] kejal product Ltd. has offered discounts on its order in the manner stated as follows: 300 but less than 400 400 but less than 1,500 A250 1,500 but less than 3,000 3,000 but less than 7,000 OS 7,000 And over Arinual the material is 7,000 tonnes. Inventory carrying costs are 20% of material cost (Price Sper ton) Thé delivery cost per order is Rs. 10
    • Q.P. Code :05070
    • B] Mr. Dhruv Ltd. gives you the following information in respect of components X used in the manufacturing 07 Reorder period 2 to
21. Q1 Reorder level
22. Q2 Minimum
23. Q3 Maximum level
24. Q4 Average stock
25. Q3 Evaluate a project which requires an initial outlay of Rs.2,00,000 and-generates revenue of Rs.1,20,000, Rs. 60,000, Rs.40,000 Rs.1,00,000 from the end of the first year to the end of the fifth year. The required rate of return is 10% and income tax rate is 50%. The project has a life of five years:and will be depreciated on straight line basis. Present value of Rs. 1 Discounting factor: State whether the following statement are true or false (Reason not required) and rewrite. 08 15 marks
26. Q1 Capital Budgeting is the process of making investment decision for capital Expenditure
27. Q2 Debenture is a debt instrument
28. Q3 Debenture holders have control
29. Q4 Profitability index is a PV-of returns per rupee invested
30. Q5 Lagin payment of overheads increases working capital requirement
31. Q6 of stock turnover reduces liquidity 7, Deprecation is a Non Cash Cost
    • B] .Match the column with the most appropriate answer and rewrite the correct statement 07 £OQ f. Cash receipts and Cash payments are
    • Q.P. Code :05070
32. Q4 Write a short notes on the following (Any three)
33. Q1 Gross and net working capital
34. Q2 Importance of Capital Budgeting
35. Q3 VED analysis
36. Q4 Aspects of Receivable management

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