B.B.A. (Semester Examination, 2017
FINANCIAL MANAGEMENT I
Day Date: Monday 17-04-2017 Max. Marks: 80
Time: 10.30 AM to 01.30 PM
N.B. All questions are compulsory.
Figures to the right indicate full marks.
Use of calculator is allowed
Q.1 Choose correct alternative. 08
concept considers time value of money.
Profit Maximization Both
Wealth Maximization None of these
debentures are those that are converted into
equity shares.
Bearer Registered
Mortgaged Convertible
are capable of getting converted into cash usually
within a year.
Current assets Fixed assets
Fictitious assets Capital assets
At level new order is placed.
Minimum Average Level
Maximum Level Reorder Level
Dividend is paid to return for supply of capital.
Shareholders Debentures
Term Loan Bond holders
If annual consumption is 100000 units and order size is 2500
units, then number of orders to be place in a year will be
40 100 400 1000
Gross working capital equals to total of
Current Liability
Current assets
Current assets Current Liability
Both a b
is a tool used to predict surplus or deficit cash
balance for particular time period.
Cash Book Cash flow statement
Cash Budget None of these
Page 1 of 3
SLR-SINA 39
Q.1 Fill in the blanks with appropriate word. 08
shareholder are residual claimants of income and
assets
When current assets are less than current liabilities then the
resulting figure is
major source of capital for innovative and risky
projects.
time required to get fresh delivery of materials.
preference shares are repaid after specific time
period.
debentures are transferred by mere delivery.
EOQ stands for
Debenture is type of capital.
Q.2 Term Loan 16
XYZ Co. buys 75000 glass bottles per year. Price of each bottle
is Rs. 0.90. Cost of purchase is Rs. 100 per order. Cost of
holding one bottle per year is Rs. 0.335 including charges for
taxes insurance. Find out EOQ and number of orders to be
place in year.
Q.3 Importance of financial planning. 16
Determine Reorder level, Minimum level, Maximum level and
Average level from the following
Normal Usage 100 units per week
Lead time 4-6 weeks
Minimum usage 50 units per week
Maximum usage 150 units per week
Reorder Quantity 600 units
Q.4 Following are the estimates from March to August 2015 16
Month Sales
Rs.
Purchase
Rs.
Wage
s
Rs.
Manufacturing
Expenses
Office
Expenses
Selling
Expenses
March 60,000 36,000 9,000 4,000 2,000 4,000
April 62,000 38,000 8,000 3,000 1,500 5,000
May 64,000 33,000 10,000 4,500 2,500 4,500
June 58,000 35,000 8,500 3,500 2,000 3,500
July 56,000 39,000 9,500 4,000 1,000 4,500
August 60,000 34,000 8,000 3,000 1,500 4,500
You are given following Information:
Plant Costing Rs. is due for delivery in July payable
10% on delivery balance after 3 months.
Advance Tax of Rs. 8000/- is payable in March June.
Period of credit Allowed: By Supplier 2 Months to
customers 1 Month.
Lag in Payment of Manufacturing Expenses half Month.
Lag in payment of All Other Expenses 1 Month.
Page 2 of 3
SLR-SINA 39
Prepare a Cash Budget for 3 month starting on 1st May, 2015 when
there was a cash of Rs. 8000/-
OR
Define Financial Management. Explain the functions of finance
Manager.
Q.5 Define equity shares. Explain the features of Equity shares
Preference shares
16
OR
Prepare an estimate of working capital requirement from the
following information of a trading concern:
Project annual sales 1,00,000 units.
Selling Price Rs. 8 Per Unit.
Percentage net profit on sales 25%.
Average credit period allowed to customers 8 weeks.
Average credit period allowed by suppliers 4 weeks.
Average stock holding in terms of sales requirement 12
weeks.
Allow for for contingencies.