B.B.A. (Semester (CGPA) Examination Oct/Nov-2017
FINANCIAL MANAGEMENT I
Day Date: Tuesday, 14-11-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
Instructions: All questions are compulsory.
Figures to the right indicate full marks.
Use of calculators is allowed.
Q.1 Choose correct alternatives: 07
A net working capital will arise when current assets exceeds
current liabilities.
Negative Positive
Fixed Fluctuating
are capable of getting converted into cash usually within a
year.
Current assets Fixed assets
Fictitious assets Capital assets
Current assets does not include
Raw material Undrawn profit
Prepaid expenses Cash
represents the hybrid form of financing.
Equity Debentures
Term Loan Preference share
If annual consumption is 10000 units and order size is 250 units, then
number of orders to be place in a year will be
4 40
10 100
Level Maximum Rate of consumption X Maximum delivery
period.
Maximum Minimum
Re-order Average
debentures are those debentures that are transferable by
delivery only.
Bearer Registered
Mortgaged Convertible
Q.1 Fill in the blanks with appropriate word. 07
maximization are the goals of financial management.
When current assets are less than current liabilities then the resulting
figure is
is also known as short term cash forecasting.
means time required to get fresh delivery of materials.
preference shares are converted into equity shares after
specific time period.
shareholder do not have voting rights.
At level new order is placed.
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Q.2 Attempt any 2. 14
Explain the importance of Financial Planning.
Limitations of Financial Planning.
The ABC Co. has been buying a given items in a lots of 1200 units which is
a 6 months supply, the cost is Rs. per unit. Order cost is Rs. 8 per order
carrying cost is 25%. You are required to calculate EOQ and also compare
the Present system with EOQ and suggest whether company should
continue the present purchasing policy or with EOQ.
Q.3 Attempt any 2. 14
From the following Calculate different inventory levels for both A B
product.
Two components, A B are used as follows:
Normal Usage 50 units each per week
Maximum Usage 75 units each per week
Minimum Usage 25 Units each per week
Re-order Quantity A 300 Units
B 500 Units
Recorder Period A 4 to 6 weeks
B 2 to 4 weeks
Objectives of Cash Management
Objectives of Inventory Management
Q.4 Prepare an estimate of working capital requirement from the following
information of a trading concern:
14
Project annual sales 1,20,000 units
Selling Price Rs. 10 per unit
Percentage net profit as sales 30%
Average credit period allowed to customers 10 weeks
Average credit period allowed by suppliers 5 weeks
Average stock holding in terms of sales requirement 5 weeks
Allow for 15 for contingencies.
OR
What is financial Management? Explain the objectives of Financial
Management Functions of Finance Manager?
Q.5 Explain the features of Debentures and preference shares. 14
OR
Prepare a cash budget for 3 months ending 31st December 2015.
Closing Cash balance as on 30th September is estimated Rs.
Month Sales Rs. Purchases Rs. Wages Expenses Rs.
Sept 60,000 50,000 8,000
Oct 84,000 60,000 24,000
Nov 96,000 70,000 16,000
Dec 1,20,000 80,000 24,000
Additional Information:
Cash sales are 20% of credit sales
Credit allowed debtors 1 month
Credit allowed by supplier ½ month
Lag in payment of wages expenses 1/8th Month.