73461 mmc WEA -617 SLNo. Total No. of Pages : 7 V Semester B.B.A. Examination, March/April - 2022 (Scheme : CBCS-2018) EM.-II (Elective-I1) Working Capital Management Time : 3 Hours Max. Marks : 80 PART -A Answer any two questions. Each question carries 15 marks. cdeammdice acct eug0a. BS DA 1S woeres. Q1) Explain the following. a) Pledge. b) Cash credit. c) Overdraft. 4) Billspayable. e) Commercial paper. Setieayrives, L504. a) Aco. 2) ait oc. aR) cpecds. Q) daatiems mca. S) sede, mars. Q2) From the following information estimate the working capital requirement for 2022 of Anu Co., Particulars Cost per unit (%) Raw material 100 Wages. 60 Factory overheads 60 Administrations orverhead 50 Selling overhead 50, Total Cost 320. PTO. https://www.uomonline.com73461 MA-617 Additional Information: a) Materials are in stores for 1 month, b) Suppliers are allowed credit of 1 month, c) Selling Price is € 400 per unit. d) Production estimated to be € 72,000 units. e) Finished goods are in stores for 2 months. f) Production process consumers 1 month, 8) 50% of sales will the on credit. h) Lag in payment of wages | month. i) Customers are allowed credit of 2 months. i) Add 10% contingency. on VOMBBAS, 2son' BS choos B23 (Z 8 100 a 60 3. 60 SBES sy 50 Bees sheen def 50 2) mebAnsd mABASY woah Soried mvoings. 2) NOwosmmedd word sony NAO nevaes deaagd. 2) Sere dé Gs chederA oe. 400. @) women emacs 72,000 obey. @) Ath Sayre adem sores MRASY wmvoingss, OM )MBGm sob rom sored. 8) Be 50 Sab, soos MAPOBADIS. Ser moeaedoday, wom Sone dogs Aewaa. ©) MBO ade Sone MAO Moses Aeweand. 8) Se 10 MOY Beor, -2- https://www.uomonline.com ad BOMAOD NS ASTNGOt 2022 Se exon td, wowmand Se@sca:73461 MA-617 Q3) Dayan Co., desires to prepare a cash budget for 3 months from April to June 2021. Month | Sales | Purchases | Wages | Manufacturing | Other Expenses Expenses | Feb. | 3,50,000 | 2,50,000 ] 29,000 10,000 12,000 | March | 4,20,000 | 3,00,000 | 30,000 12,000 16,000 April | 2,60,000 | 3,20,000 | 36,000 14,000 18,000 | May | 2,50,000 | 3,40,000 | 32,000 16,000 20,000 June | 2,80,000 | 3,00,000 | 30,000 18,000 20,000 | Addit ional Information: a) Cash on Hand on 1-4-2021 & 1,20,000. b) 50% of sales is on cash, 50% of the debtors pay in the month following the month of sales and the balance in next month. c) Creditors are paid in the month following the month of supply. d) Sales commission at $% on sales to he paid in the month following the month of sales. e) _Lagin payment of manufacturing expenses % month, other expenses 1/4 month. f) Dividend at 20% on the paid up capital of € 2,00,000 is payable in the month of May. does’ go., & 8¢Ns arbsobay, eB 2021 Se MOS Lee SH shed Sone snc any omens oda, soswosey memes | OeO awd eusacae 233 Seg Dewees) Bum — 3.50,000 | 2,50,000 29,000 | 10,000 12,000 cere | 420,000 | 3,00,000 30,000 12,000 16,000 aget | 2,60,000 ; 3,20,000 36,000 14,000 18,000 abe 2,50,000 | 3,40,000 32,000 16,000 20,000 BO 2,80,000 | 3,00,000 30,000 18,000 | 20,000 3- https://www.uomonline.comMA-617 2) 1-4-2021 cost 2 ane bey oa. 1,20,000. @) de. 50 Cm oe anit Soovsaond. Sess 50 dw, rod Sheek Seadess, Seem aeobe Sonegone sh wed id SBT Bohs ScnerAGohe DaAnew7myap. A) AUTH, ATHmM Hwan Dooos Songe, AOSV ON xesee mare Ss., 8) SpoUmdon Be. 5 OM Degvooa, BOMIVswaIos sho! & soriesg mesa: peed. 3) wads x Bm, 4 “30 ND Ts BSS seenyn, 1/4 Sort SBA smpssmza ae. * OD ave Sondag Ge. 2,00,000 mBSaRG wowsevn sed Se. 20 om, AWOBHAL, Hewwessnd. BO shee Samed 4) Harshitha Ltd., has annual sales of € 8,00,000 and an average collection period of 30 days It is considering a more liberal credit policy. If the credit period is extended, the company expects, that sales and bad debts losses will increases in the following manner. Credit policy Increase in Increase Bad debts Credit period in sales % of total sales A 10 Days 25,000 2 B 15 Days 35,000 c 30 Days 60.000 D 40 Days 75,000 0 and variable d required rate undertaken ? The selling price per unit is = 3.00, average cost per unit & 2. cost per unit = 1.80. If current bad debts loss is 1% of sales of return on investment is 20%. Which credit policy shoul Ignore taxes and assume 360 days in a year. BATE VowWMES Dore DoTts de. 8,00 eee 2° OSAPNDBES somo BB, Y AT. BH, MYBO VAHobad, OAOA mone Bye Bs EUS Ocsody wieder wAo NBO SBOOE wey chong, aes wee Be. 80m WO 2 10 bars 1.2 a 15 Garis 1.5 & 30 O8nes 1.8 a 40 Ode 2.0 Ds obedus Swmud sd de. 3.00 BE oo CORRES ADOSO ses, Be. 2.50 mre BS “obadys noewms se ce. 1.80 Ex3 80a Ded Re RwmUDd se. 1 whey, shay Boadod ded cemAWS C2 Goad se. 2 353 Gres NAO Bebeeea, wmaonden? 2%, . Sorioday, € wots Bair gs, 360 Oxngond Bes ge is -4- https://www.uomonline.com73461 MA-617 PART-B weno Answer any three questions. 10 marks each. ciAdoe acd GINer wor. Y3 GAA 10 woere. Q5) Describe the various factors determining the requirement of working capital. ad woBenys engi, AGroms worn¥m, BOA. Q6) Following information is related to two components P and Q. Normal usage-120 units per day Minimum usage - 100 units per day Maximum usage - 150 units per day Re-order quantity- 1,500 units - ‘P’, 18,00 units - 'Q' Re-order period - 10-15 days - 'P’, 5-10 days 'Q' Calculate the following for each component. a) Re-order level. b) Minimum stock level. c) Maximum stock level. & SENS Sebsodo ‘2’ Sh ‘be’ dow mawAer Aowogad. Swarnw wes - Ong, 120 ohnawnvd tog wee — Ong 100 chedetried ros aes — Ong 150 cheated soo ees Teg, 'P'-1,500 chads 'Q' - 1,800 abner soo eters wo 'P'- 10-15 Oaned 'Q'-5-10 Oars. BE SOK si sensairva, 4 ae. a) Do-sdess wey, B) Fda comps ade, A) Mow commas xdt3, -5- https:/www.uomonline.com73461 MA-617 Q7) From the following details draw a plan of ‘ABC' selective control. Bi stow AATrvoD o.2.d, Hobos okmensodad, BoSDOA. Item units unit cost Bayne Buse Buss ses 1 11,500 7.10 2 29,000 0.40 3 60,000 0.20 4 300 8.00 5 1,500 10.00 6 600 22.00 7 24,000 3.00 8 7,000 5.00 9 38,000 1.50 | 10 40,000 0.50 | Q8) Explain the techniques of Inventory management. soar Q9) What is cash management? Explain the motives for holding cash. ditch Anew conden? sda, BROOD edreneah, QHOA. PART-C gen-d Answer any four questions. Each question carries on 5 marks. cinaymade moe Beret wgOA. HB BBR acd eosie. Q10)Write a note on EOQ. ab.82, WH, said adctd. Q11) Write the types of working capital. chacins wodseys agnvar, wdabo. ittps://www.uomonline.com «73461 MA-617 Q12)Write a note on Baumol's model. maine’ ANDO orf aed sono. Qi3)Calculate the Economic order quantity from the following information. Consumption of material per annum 10,000 kg Cost of placing order % 50 Storage cost 8% Cost per kg of raw material = 2 & ens Bwbscvod esiod eden megsa, Sepses Bre. DEAD B25p, Sagned 0c Bars, 10,000 2.23. ees Saaen shes Ay do. 50. compas eg, 8%. nord B28. Buy aos ses de. 2. Q14)What are the uses of cash Budget? Aneh sons ayo esioseenrivesa? Qi5)What do you mean by reorder level? mo ces aoey 2oddes? xo oe % https://www.uomonline.com Whatsapp @ 9300930012 Send your old paper & get 10/- Hoa Tet tat st st 10 Tea Te, Paytm or Google Pay T- https://www.uomonline.com