TIT Dethi Managerial Duration: 1 hour L.A company had a quic!. ratio of y had a quicl ratio of 14, a current ratio of 3.0, an i i Peete es ), an inventory tumover of 6 times, ‘otal ee aie Rs 1000, ana c-sh and marketable securities of Rs. 1,20,000. Find annual tors collection period. Assume that the current assets of the company comprise only, of cash and marketable securities, Jebtors, and inventory. All sales are on credit. (5 marks] 2 You have a choice of avczpa'z : z:"t2r of two 5-year cash flow streams or single ar nts, i cash flow stream is a srauary annuity, and the other is a mixed stream. . .say accept alternative A or B—cither as a cash flow stream or as a single amount. Gi =n the cash flow «© SEAM and single amounts associated with each (se the following table), and assuming a 9 per nN cent opportunity cost, which alternative (A or 8) and in which form (cash flow stresin 9: s' \\ amount) would ya: pref \ ———_ —___- -__— Sash flew stream 7 Alternati 1 00 Rs. 1100] } Rs. 900 | Rs. 700 | Rs. 500! Rs. 300 je amount aml Rs. 2.800 | {5 marts) Lecture of small capacity motors. The variabie e:: Material- Rs.50; Labor- Rs.80; Variable $C lakhs per 3. Asian Industries Ltd specializes in the mans Component of the cost structure of a motor is as en overhead - 75% of labor cost. Fixed overheads of the company amount to Rs. ‘aunum. The sale price of the motor is Rs.230 each. : a. Determine the number of motors that have to be manufactured and sold in a year in order to b. al motors over and above the break-even point have to be made and sold to make 2 ar? profit of Rs.1 lakh per ye ee Rs.15 each, how many motors have to be sold to break-even! c. If the sale price is reduced by Rs. y ob 4, What is a cash conversion cycle? What should be firm's goal regarding the cash conversion 0 fi sten its cash conversion cycle? cle? What are some actions a firm can take to shorten i ch rsion cy ca (5 marks] y