73461 inn MI B-924 SLNo. Total No. of Pages : 7 V Semester B.B.A. Examination, March- 2023 (Scheme : CBCS - 2018) FINANCIAL MANAGEMENT - IT Working Capital Management Time : 3 Hours Max. Marks ; 80 Instruction: Answer all the Parts. ie Geena wgor. PART-A Answer any two questions. Each question carries 15 marks. oimaiendte ada gBsek mga. ge xBA 15 wosrin. Q1) Define the term working capital management. Explain the factors that determine working capital requirements of a company. BO noted AdrarMohm, mSMAA. LOM soMAch wd wowmdd SNE NYaR, AGFOwS wourivan, avo~. Q2) The following particulars are available from Advaitha Ltd. Particulars Per unit (%) Raw materials 185 Direct Labour 70 Overheads 140 Total Cost 305 Profit 75 Sales cost 470 Other Information: a) Raw materials are in store on an average 8 weeks. b) Materials are in process 4 weeks. c) Finished goods are in store on average 6 weeks. d) Credit allowed to customers 8 weeks. e) Credit allowed by suppliers 6 weeks. f) Time lag in payment of wages 4 weeks. g) Time lag in payment of overheads 2 weeks. h) % of the output is sold for cash. i) Cash in hand expected to be 2 1,00,000. PTO. https://www.uomonline.com73461 MB-924 You are required to estimate the working capital requirements of the firm for output level of 1,56,000 units of productions. Wages and overheads accrue evenly throughout the year. (Assume 52 weeks a year) 08,8 somdohod 3 FAS AdoNe Ags. 280 nom obeairn (8) Boy, cagenied 185 Sed tad 70 shee; 140 dy 395 egy 75, arowd dd 470 3d debs: 2) % DoGrrisd comps soso aot seeriv adel. 2) madd correla) meq mGNeh acbss. a) rafts MASY STA SD aon BOSS. @) meen awa “Res DOLD aDodried. @) Adwommdh dems mesh vod spore. OT )LO TASchgs Mod wosd meg mone. 2) sheet MHSOHYS MOD wosd ade spdrivd OW) OILS “Age sok snovesm*mbgd. 2) JobQ adders Aric de. 1,00,000. oi 156, 000 odbpaesnig waani SR gress wd, nomsmdaa, o, Ggae toh adap sheers dar ade Astiedon so nogs Doth gay (200d arg 52 mens Dod wD.) Q3) The present annual sales turnover of a company is 50,00,000. The unit sales price is € 200. The variable cost is € 120 per unit and fixed cost amount to = 6,25,000 p.a. The present credit period of 30 days is proposed to be extended to either 60 days or 90 days for customers. The expectations are as follows. Credit period 30 days 60days 90 days Increase in sales - 10% 30% % of bad debts 1% 2% 5% Fixed cost will increase by € 75,000 when sales increase by 30%. The company requires a pre-tax return on investment at 20%. You are required to evaluate the credit policy and suggest the best one. Ignore tax and assume 360 days in a year. 2 https://www.uomonline.com73461 MB-924 word tosidob sears svecets F50,00,000 x3 smas Brome dd Smart aoearbsd ae 120 snds3. mars AS Be 25. AGO, maton” 30 Sang wQoodAd, Dewan wie, 60 Ose Sgn 90 sien OROTD ALsAeoid wd soegis af WG e aynsoss. wmqgo wsd 30 Gans 60 Ginw 90 Adrsd bs - 10% 30% 0m mors Seswaot 1% 2% 5% penned Be. 30 Sab, Gap Ad segrisd T 75,000 dad, Seprdgs. mao gon sexe ge, 20 OH, Teposa, deg awed. dew) aH ALeNem, APOL8o% gas Ba, fos ane arg, 360 Osngom> mPOA oe, ‘Sorkcaay, eogs. Q4) From the follownig budgeted data, forecast the cash position at the end of April, May and June 2022. Month Sales Purchases Wages Other Exp. 2022 zg z z z February 7,50,000 3,00,000 40,000 -~—-50,000 March —10,00,000 4,00,000 44,000 -~—«55,000 April 7,00,000 4,50,000 45,000 60,000 May 8,50,000 5,25,000 50,000 65,000 June 7,25,000 6,00,000 $2,000 ~—70,000 Additional Information: 1) Cash in hand on 1-4-2022 & 82,500. 2) 20% of the sales is for cash. 3) 50% of the debtors allowed one month credit and remaining 50% debtors allowed 2 months credit. 4) 20% of purchases are for cash and 50% of creditors are paid in the month following the month of supply and remaining 50% of creditors are paid in the next month. 5) Wages are paid in first working day of the next month. 6) 1 month lag in payment of other expenses. https://www.uomonline.com -3-73461 MB-924 & B¢8od odve SOETIPOG 2022 de MOS AAS, she, wen Son? arm ana.o: Buon, soiwen, sony BoD Dd BOD BBS Deberis 2022 z z zg zg Bowo 7,50,000 3,00,000 40,000 50,000 Souter 10,00,000 4,00,000 44,000 55,000 age 7,00,000 4,50,000 45,000 60,000 abe 8,50,000 5,25,000 50,000 65,000 wear 7,25,000 6,00,000 52,000 70,000 BewBO_aDbS: 1) “1-4-2022 dom adnseed ania Boe, BA. 82,500. 2) 3e. 20 Sab aeons arch SWOVNG. 3) Be. 50 meRdOH 20a SONY MOT LHO ads eves se. 50 Om, MOTTON How sors mod SSO AederAd 4) Be. 20% Om DoeHoiw sn cerag shay Se. 50% day de xduoes spac BD0OS sonvd xoomecedsi mastenad., Da, MPD 50% OmRD, ead sods toned masseamaad, 5) abesedotbay, sods “Sone xeab AIO BIHAR. 6) 88 debe ries, LOG Sone Hols mBeNeoraeb. PART - B eari-2 Answer any three questions of the following. Each question carries 10 marks. OVAWAG Sete xy. ENS wgOn. TS BBA 10 sosne. Q5) Explain the motives for holding cash. aide, &AO OES se seneny, DBOX, Q6) From the following details, draw a plan of ABC. Item No. No. of units ‘ost it (%) 8,000 30,000 1,500 600. 38,000 50,000 1,00,000 5,000 400 40,000 Srwmuszynaune https://www.uomonline.com73461 MB-924 a gad Sxdnvos ABC CSacumodeh, BoLWOR, Sx) ohoawtriy Hoss, oben is (%) 1 8,000 4.00 2 30,000 2.00 3 1,500 15.00 4 600 30.00 5 38,000 2.00 6 50,000 0.75 7 1,00,000 0.30 8 5,000 4.00 9 400 10.00 10 40,000 0.20 Q7) Annual usage of materials is 12,800 units. Cost of placing an order Rs. 200. Carrying cost Rs. 32. Find out: a) EOQ b) No. of orders to be placed ¢) Presently the purchase is made once in a year. If purchase is as per EOQ, how much can be saved? momearie % euricleen 12,800 odode. edied abe ZS scesg, Sve. 200. REISS Sey De. 32. BOMSBNO: 2) soso Boes my, ®) AQrwadmd edesiv sosd, A) BRS DOO aairdash ond. nom Bev ecesd meg mod Sods amb seo weswadad? https:/Avww.uomonline.com oa73461 MB-924 Q8) What is credit policy? How can optimum credit policy to be established? (WAH Aes DoUTea? 20cb wayga GH Aesoda, Ser AGRaXn=TD. Q9) Following information is related to two components M and N, Normal usage Minimum usage Maximum usage Re-order quantity Re-order period 10,000 units per week 1,500 units per week 5,000 units per week M 40,000 units, N 60,000 units M > 4 to 6 weeks, N-> 2 to 4 weeks Calculate for each component a) Re-order level b) Minimum stock level c) Maximum stock level d) Average stock level BeNS Drbsobm, Mads Naow ada madre sowodad. BLN wes Baal ned nom wed sho eded meg hod ees OBO : sg, 10,000 ohnnwneds meg, 1,500 oc.edestned aed§ 5,000 caaenesrie M 40,000 ohoaestnisd N 60,000 odbedetnss M- 4 000 6 medne N~ 2 600 4 mort Bs mawano swndariveh, sodwBowo. ©) mo oder be, ©) Baa ably A) nog aby, @) oEso GempAd abe, https://www.uomonline.com73461 MB-924 Answer any four questions. Each question carries 5 marks. ComaVade sey xeyrien MBOr. BI DEA oad woe. oF Q10)What is JIT? JIT Dowden? Q11)Write a note on Commercial Paper. anrdny, sigs wri aid adn, Q12)What are the uses of Cash Budget? Sich Sone Tod wmxoieeninayy? Q13)What do you mean by Re-order level? wo vader SRY, NoWGem? Q14)Write a note on Baumol model. aber ADRESS aif Uaes wdoNo. Q15) What is operating cycle? Baokw wasoddea? & & & 1. https://www.uomonline.com