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    Biswanath Dutta
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    This document is an assignment for an MS-41 Working Capital Management course. It includes 5 questions about determining working capital, classes of cash flows, overcoming cash flow problems, risk-return tradeoffs in financing current assets, and comments on liquidity vs. profitability goals. It also provides financial details for Hindustan Ltd to assess their average working capital requirements for the year. Students are asked to answer all questions and submit the assignment by April 30, 2012.

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    MS-41

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    This document is an assignment for an MS-41 Working Capital Management course. It includes 5 questions about determining working capital, classes of cash flows, overcoming cash flow problems, risk-return tradeoffs in financing current assets, and comments on liquidity vs. profitability goals. It also provides financial details for Hindustan Ltd to assess their average working capital requirements for the year. Students are asked to answer all questions and submit the assignment by April 30, 2012.

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    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    28 views2 pages

    MS 41

    Uploaded by

    Biswanath Dutta
    This document is an assignment for an MS-41 Working Capital Management course. It includes 5 questions about determining working capital, classes of cash flows, overcoming cash flow problems, risk-return tradeoffs in financing current assets, and comments on liquidity vs. profitability goals. It also provides financial details for Hindustan Ltd to assess their average working capital requirements for the year. Students are asked to answer all questions and submit the assignment by April 30, 2012.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    MS-41

    Management Programme

    ASSIGNMENT FIRST SEMESTER 2012

    MS-41: WORKING CAPITAL MANAGEMENT

    School of Management Studies INDIRA GANDHI NATIONAL OPEN UNIVERSITY MAIDAN GARHI, NEW DELHI 110 068

    ASSIGNMENT Course Code Course Title Assignment Code Coverage : : : : MS - 41 Working Capital Management MS-41/TMA/SEM - I /2012 All Blocks

    Note: Answer all the questions and submit this assignment on or before April 30, 2012, to the coordinator of your study center. 1. 2. 3. 4. 5. Explain different approaches to the determination of working capital and discuss the concept of operating cycle. What are the different classes of cash flows? How do cash flow problem arise? Discuss the various methods to overcome this problem. Discuss the risk return considerations in financing of current assets. Liquidity and profitability are competing goals for the finance manager. Comment. From the following details you are required to make an assessment of the average amount of working capital requirement of Hindustan Ltd. Particulars Purchase of material Wages Overheads : Rent, rates, etc. Salaries Other overheads Sales cash Credit sales Average amount of stock and workAverage period of credit 6 weeks 1 weeks 6 months 1 month 2 months 2 months Estimate for the 1st year (Rs.) 26,00,000 19,50,000 1,00,000 8,00,000 7,50,000 2,00,000 60,00,000 4,00,000

    in-progress Average amount of undrawn profit 3,00,000 It is to be assumed that all expenses and income were made at even rate for the year.

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