GUG/W/18/938 1 P.T.O
Post Graduate Diploma In Business Management One Year
DBM-02 Management Accounting Financial Management Paper II
P. Pages 2 GUG/W/18/938
Time Three Hours Max. Marks 80

Notes 1. Attempt any four question.
2. All questions carry equal marks.
1.
Define financial management its scope objective of financial management.
20
2.
Explain the concept Importance of fund flow statement.
20
3.
Define Budgetary control and state its characteristics.
20
4.
What is working capital management? Explain in detail scope of working capital.
20
5.
From the following Balances of Bombay company Ltd Prepare fund flow statement.
Particular
31st Dec 2012
31st Dec 2013
Cash
20,000
25,000
Inventories
31,000
32,000
Account receivable
24,000
27,000
Other current Asset
8,000
7,000
Fixed Asset
50,000
58,000
Accumulated Depreciation
21,000
25,000
Account payable
20,000
21,000
Long term debts
14,000
13,000
Equity capital
50,000
53,000
Retain earnings
28,000
37,000
Additional Information:-
Fixed Assets costing Rs 12,000 were purchased for cash.
Fixed Asset (Original cost Rs 4,000 accumulated depreciation Rs. 1,500) were sold
at Book value.
Depreciation for the year 2013 amounted to Rs. 5,000.
Dividend was paid in 2013. Rs.
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6.
The following information is given above M/S R. K. Ltd for the year ending 31st Dec 2015
Stock Tum over Ratio 6 times
Gross profit Ratio 20% on sales
Sales for 2015 Rs. 3,00,000
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GUG/W/18/938 2
Closing stock is Rs. 10,000 more than the opening stock.
Opening creditor's Rs. 20,000.
Closing creditor's Rs 30,000
Trade Debtor's at the end Rs. 60,000
Net working capital Rs. 50,000.
Find
Average stock
Purchase
Creditor's Tumover Ratio
Average payment period.
Average collection period
Working capital Tumover period.
7.
Reliance Ltd operating Income (before Interest tax) is Rs. the firm's cost of debt is 10% and currently. Firm employee Rs. of debt. The overall cost of capital of firm is 12%. You are required to calculate cost of equity.
20
8.
The following additional Information is available from the books of K.K. Ltd.
Average Raw Material in stock 1 Month
Average Materials in Process ½ Month
Average Finished goods in stock
Credit allowed by supplier.
Credit allowed to debtor's
Time Lag in payment of wags
Overhead.
One fourth of sales are on cash basis
Cash balance is expected to be Rs. 1,20,000
You are required to prepare a statement showing the working capital needed to finance a leved of activity of 70,000 units of annual output. The production is carried throughout the year on even basis and wages overhead accure similarly
20