M.B.A. DEGREE EXAMINATION, MAY 2017
Second Year
Financial Management
Time 3 Hours Maximum Marks: 70
SECTION-A × 5 15)
Answer Three questions
Q1) Longterm finance.
Financial leverage.
Funds flow statement.
Cash budget.
Cost of equity.
EOQ.
SECTION-B × 15 45)
Answer Three questions.
Q2) What are various sources of raising short term finance?
Q3) Define ratio. Give its classification.
Q4) State the benefits and limitations of budgetary control.
Q5) Describe the preparation of flexible budget.
Q6) What are the requirements of cost of capital?
Q7) Explain the nature and scope of financial management.
SECTION-C
Compulsory
Q8) Case study (Problem)
Prepare funds flow statement from the following data:
Comparative Balance Sheets
Liabilities Capital Amount (in Assets Amount (in
2010 2011 2010 2011
Share capital 1,400 1,740 Land 960 800
Reserves
surplus 600 780 Plant 600 680
Debentures 880 880 Patents 40 36
Discount on
Debentures Closing stock 600 688
Sundry creditors 1,200 1,280 Debtors 400 740
Provision for
Depreciation 200 112 Cash 1,600 1,776
4,200 4,720 4,200 4,720
Other information:
Net profit for the year Rs. 4,00,000.
Dividend paid Rs. 80,000.
Shares issued for cash Rs. 2,00,000 and for bonus Rs. 1,40,000.
Depreciation charged for the year Rs. 32,000.
A buildings as sold for Rs. 56,000 its cost and book-value being Rs.
1,60,000 and Rs. 40,000.