ACCOUNTS FOR MANAGERIAL DECISIONS

Transcription

1 ACCOUNTS FOR MANAGERIAL DECISIONS Roll no 2006 Q1 Explain objectives of financial statements. Q2 What is window dressing? Q3 Prepare comparative statement of Deepika Ltd. from the following for the year ended 31 st March 2016 and 2017: (RS. In 000 ) Current assets : Cash Other current assets Total Property plant etc Intangible assets Other assets Total assets 2016 Rs Rs , ,

2 Roll no 2009 Q1 Prepare comparative income statement in vertical form : Nilkamal Ltd. Profit and loss A/c fot the year ended 31 st March Particulars Particulars To opening stock To purchases To interest To depreciation: Furniture Machinery To administrative expenses To selling expenses To carriage outward To loss by fire To wages To provision for tax To net profit 2,25,000 22,50,000 1,50,000 15,000 36,000 2,94,000 4,56,000 75, ,95,000 5,70,000 5,70,000 48,36,000 3,00,000 32,10,000 1,50,000 15,000 30,000 4,41,000 7,53,000 3,15,000 15,000 3,00,000 4,35,000 4,35,000 63,99,000 By sales By closing stock By dividend By profit on sale of machinery 45,00,000 3,00,000 12,000 24,000 48,36,000 60,00,000 3,60,000 39,000 63,99,000 Q2 Explain trend analysis. Q3 Explain ratio analysis.

3 Roll no 2011 Q1 Explain limitations of Ratio analysis. Q2 What is working capital? Q3 From the following balance sheet prepare a common size statement : Assets : Cash Debtors Stock Prepaid expenses Bills receivables Fixed assets Total Liabilities : Share capital Long term debts Sundry creditors Other liabilities Total ,000 2,20,000 1,00,000 11,000 10,000 6,35,000 10,03,000 6,58,000 2,25,000 42,000 78,000 10,03,000 31,500 2,11,000 1,26,000 21,000 10,500 6,50,000 10,50,000 7,00,000 2,00,000 50,000 1,00,000 10,50,000

4 Roll no 2016 Q1 Explain different modes of expressing an accounting ratio. Q2 What is trading on equity? Q3 Following is the balance sheet of sun limited as on 31 st march 2016 Sun limited Balance sheet as on 31 st march 2016 Liabilities Rs Rs Equity share capital Retained earnings Provision for income tax Debentures Account payable Other current liabilities 4,50,000 2,31,000 84,000 2,20,000 58,000 21,000 10,64,000 6,60,000 2,00, ,80,000 64,000 33,000 11,37,000 Assets Rs Rs Building and equipment Land Patents Accounts receivables Inventories Prepaid expenses cash 4,50,000 80,000 55,000 54,000 3,00,000 6,000 1,19,000 10,64,000 5,00,000 80,000 65,000 46,000 3,12,000 4,000 1,30,000 11,37,000 Calculate following ratios for two years : a) Debt equity ratio b) Quick ratio c) Stock to working capital ratio d) Proprietary ratio

5 Roll no 2018 Q1 Following is the revenue statement of M/s Sushil Ltd. Trading and profit and loss A/c for the year ending 3st March, 2014 Particulars Rs Particulars Rs To opening stock To purchases To carriage inward To office expenses To sales expenses To loss on sale of fixed assets To net profit c/d 54,300 3,27,150 8,550 90,000 27,000 2,400 1,20,000 6,29,400 By sales By closing stock By interest received 5,40,000 84,000 5,400 6,29,400 Calculate the following ratios : a) Selling expenses b) Stock turnover ratio c) Operating ratio d) Net profit before tax ratio Q2 Write a note on cash flow from investing activities. Q3 What is margin of safety?

6 Roll no 2019 Q1 Following is the balance sheet of Sun limited as on 31 st march 2014 Sun limited Balance sheet as on 31 st March 2014 Liabilities Rs Assets Rs Equity share capital 10% preference share capital General reserve Profit and loss A/c 10% debentures Provision for tax Sundry creditors Bank overdraft Total 3,00,000 1,00,000 85,000 50,000 1,00,000 40,000 60,000 30,000 7,65,000 Plant and machinery Land and building Goodwill Marketable investment Sundry debtors Bank balance Cash in hand Stock Advance tax Preliminary expenses Total 1,50,000 2,00,000 80,000 60,000 75,000 60,000 10,000 55,000 50,000 25,000 7,65,000 Calculate the following ratios : a) Current ratio b) Liquid ratio c) Stock to working ratio d) Capital bearing ratio e) Proprietary ratio Q2 Write a note on cash flow from financiang activities. Q3 Write a note on permanent working capital.

7 Roll no 2023 Q1 From the following information pertaining to Ambica Ltd., prepare a statement showing the working capital requirements : Budgeted sales Rs 3 Direct labour Rs 4 Overheads Rs Total cost Rs 9 Profit Rs 1 Sale price Rs 10 It is estimated that : 1. Raw materials remain in stock for three weeks and finished goods for two weeks 2. Factory processing takes three weeks 3. Suppliers allow five weeks credit 4. Customers are allowed eight weeks credit Assume that production and overheads accrue evenly throughout the year. Q2 What is dividend payout ratio? Q3 What is cash flow?

8 Roll no 2024 Q1 A limited company sells goods in domestic market at a profit of 25% on sales. Its annual figures are as follows : Sales : Domestic ( 1 months credit) Export (3 months credit) sales price10% below domestic price Materials ( 2 months credit) Wages paid (1/2 month in arrears ) Manufacturing expenses ( 1 month in arrears) Administrative expenses (1 month in arrears) Sales promotion expenses (payable quarterly in advance ) Income tax payable in four installments (of which one falls in the next financial year) RS 12,00,000 5,40,000 4,50,000 3,60,000 5,40,000 1,20,000 60,000 1,50,000 The company maintains one month stock of raw materials and finished goods and believes in keeping Rs. 50,000 cash balance. Assuming 15% safety margin, ascertain the requirements of working capital of the company. Ignore work in progress. Q2 What is Cash and cash equivalent? Q3 Explain uses of financial statements.

9 Roll no 2025 Q1 Following is the revenue statement of M/s Sameer Ltd. Trading and profit and loss A/c for the year ending 3st March, 2014 Particulars Rs Particulars Rs To opening stock To purchases To carriage inward To office expenses To sales expenses To loss on sale of fixed assets To net profit c/d 54,300 3,27,150 8,550 90,000 27,000 2,400 1,20,000 6,29,400 By sales By closing stock By interest received 5,40,000 84,000 5,400 6,29,400 Calculate the following ratios : a) Office expenses ratio b) Net profit before tax ratio c) Gross profit ratio d) Stock turnover ratio Q2 What is contingent liabilities? Q3 Explain EPS.

10 Roll no 2036 Q1 Hira construction Aids Pvt. Ltd. is a manufacturer of cement. The annual accounts of the company revealed the information as follows : Customers were allowed three months credit period. Wages are paid after 15 days when they become due. Advertising expenses are paid 6 months in advance. Manufacturers expenses are paid after a month. Suppliers of manufacturing items allows one months credit. administrative expenses are paid with an average time lag of one month. The credit balance is Rs. 50,000. Finished goods are kept in stock for one and half month whereas raw material is kept for two months. Contingency margin is 10% and other details are as follows : Sales : 20 lakhs Raw materials : 6 lakhs Manufacturing expenses : 6 lakhs Wages : 6 lakhs Admonstrative expenses : Rs 4,80,000 Advertising expenses : Rs. 2,40,000 Gross profit 20% on sales. Estimate the working capital requirements of the company. Q2 What is intangible assets? Q3 What is collection period?

11 Roll no 2040 Q1 Following is the balance sheet of Moon limited as on 31 st march 2014 Moon limited Balance sheet as on 31 st March 2014 Liabilities Rs Assets Rs Equity share capital 10% preference share capital General reserve Profit and loss A/c 10% debentures Provision for tax Sundry creditors Bank overdraft Total 3,00,000 1,00,000 85,000 50,000 1,00,000 40,000 60,000 30,000 7,65,000 Plant and machinery Land and building Goodwill Marketable investment Sundry debtors Bank balance Cash in hand Stock Advance tax Preliminary expenses Total 1,50,000 2,00,000 80,000 60,000 75,000 60,000 10,000 55,000 50,000 25,000 7,65,000 Calculate the following ratios : a) Liquid ratio b) Stock to working capital ratio c) Capital bearing ratio d) Proprietary ratio e) Debt equity ratio Q2 What is a Proprietors fund? Q3 What is cash flow from operating activities?

12 Roll no 2044 Q1 Following is the profit and loss A/c of well balanced limited for the year ended 31 st March You are required to prepare vertical income statement for the purpose of analysis : To opening stock To purchases To wages To factory expenses To office salaries To office rent To postage and telegram To directors fees To salesman salaries To advertising To delivery expenses To debenture interest To depreciation : On office furniture On plant On delivery van To loss on sale of van To income tax To net profit Rs 7,00,000 9,00,000 1,50,000 3,50,000 25,000 39,000 5,000 6,000 12,000 18,000 20,000 20,000 10,000 30,000 20,000 5,000 1,75,000 1,45,000 26,30,000 By sales Cash 5,20,000 Credit 15,00, ,20,000 Less : returns and Allowances 20,000 By closing stock By dividend on Investment By profit on sale of furniture Rs 20,00,000 6,00,000 10,000 20, ,30,000 Q2 What is retained earnings? Q3 What is cash inflow and cash outflow?

13 Roll no 2048 Q1 The profit and loss A/c of a company is given below To COGS To operating expenses: admin. Exp selling exp. To non operating exp To net profit (RS. In lakhs) By net sales By non operating income You are required to prepare a common size income statement. Q2 What is debt service ratio? Q3 Explain importance of adequate working capital.

14 Roll no The following balance appeared in the books of ABC Ltd. As on 31st march, 2016 Particulars Debit Credit Building (at cost) Purchase and Sales Manufacturing Expenses Establishment charges General charges Machinery (at cost) Cash at Bank Director s fees Interest on Investment Surplus i.e. balance of statement of profit and loss (1/4/2015) Furniture (at cost) Opening stock Book debts Investment (Long term) Provision for depreciation of fixed assets General Reserve Unclaimed Dividend Trade creditors Staff provident fund 4,50,000 15,02,709 10,50,000 80,442 93,234 6,90,000 2,16,720 5,400 15,000 5,16,174 6,97,140 8,66,850 25,632 50, ,00,000 6,90,000 1,578 1,28,574 1,12,500 63,33,669 63,33,669

15 From the above mentioned balances and the following information, prepare company s Balance sheet as at 31 st March, 2016, and statement of profit and Loss for the year ended on that date: 1) Provide Rs.57,000 for depreciation on fixed assets and Rs.24,000 for managing Director s Remuneration 2) Stock on 31 st march, 2016 was valued at Rs.4,19,040 3) Make a provision of Rs.1,50,000 for income tax 4) Interest accrued on Investments amounts to Rs.5,250 5) The directors propose a dividend of 8% after transfer of Rs.1, 05,000 to General Reserve. 2.Define and explain the concept of Working Capital 3. List out the various types of working capital

16 Roll no Following trail balance is extracted from the books of IPL Company ltd. As on 31 st March, 2017 Debit balance Fixed assets (Net Block) 5,32,50,000 Paid up share capital Investment in shares of companies 1,72,50,000 37,500 equity shares of Rs.10 each 3,75,00,000 Stock (at cost) Sundry Debtors (unsecured and good) 1,50,00,000 75,00,000 5% debentures (Rs.100 each) Provisional for tax for 75,00,000 Bills receivable 52,50,000 -Financial year L.Y 78,75,000 Bank balance 65,62,500 -Financial year C.Y 71,25,000 Discount on issues of share 3,00,000 Bills payable 33,75,000 Advance tax paid for Sundry creditors 52,50,000 -financial tax paid for L.Y 71,25,000 General reserves 75,00,000 -financial year C.Y 67,50,000 Profit and loss account 15,00,000 Prepaid expenses 7,50,000 (L.Y) Net profit for the year 2,59,87,5000 Outstanding expenses 11,25,000 Unsecured loans (long terms) 1,50,00,000 11,97,37,500 11,97,37,500 Additional Information 1) Debentures are secured against stock. 2) Transfer to general reserve. 3) Proposed 10% for the year is recommended 4) Ignore previous year figures and cooperate dividend TAX.

17 5) Market value of investment is Rs.1, 85,000 while the face value is Rs.1, 50,000. 6) Discount on issue of shares will not be amortized in next 12 months. Prepare Balance sheet as at 31 st March 2017 as per the companies Act after considering the above adjustment 2.Define and explain the meaning of receivable management 3. Costs of Maintaining Receivable

18 Roll no Following is the trail balance of Integrated Electrons Ltd. As on 31 st March, 2012 Particulars Debit Credit Cash in hand Cash at bank Share Capital 9% debentures Bank overdraft (union bank) Investments Bills receivable- Trade Sundry debtors Sundry creditors Security deposits Profit and Loss A/c Securities premium Interest on Debentures accrued and due Goodwill Land and building (cost Rs.2,50,000) Plant and Machinery (cost Rs.5,00,000) Furniture (cost Rs80,000) Provision for Taxation (A.Y ) Advance Tax (A.Y ) Bills payable General Reserve Stock in trade Capital Reserve 19,500 34,300 10,000 1,40,000 5,50,000 4,000 65,000 1,90,000 3,00,000 45,000 1,00,000 8,49,450 9,20,000 3,00,000 2,00,000 2,40,000 2,90,000 90,000 6,750 1,20,500 30,000 1,00,000 10,000 23,07,250 23,07,250 The following further particulars are available

19 1) The authorized share capital of the company was Rs.30, 00,000/- dividend in to 3, 00,000 Equity shares of Rs.10/- each. 2) Sundry debtors, which are all unsecured and considered good include Rs.90, 000 due for more than 6 months. 3) Investments represents 2,5000 Equity shares in X. Ltd. Of Rs. 10/- each Rs.4/- each per share called and paid up. 4) Bills receivable discounted with the bank not matured till the balance sheet date amounted to Rs.10, 000/-. You are required to prepare a balance sheet of integrated Electrons Ltd. As on 31 st March, What is Financial Statement? Explain its types 3. Explain the nature of financial statement

20 Roll no Following is the trail Balance of EKKY Ltd. As on 31 st March,2017 Debit Balance Rs. Credit Balance Rs. Stock (at cost) 5,00,000 Share capital (equity shares of capital rs.100 each) 20,000 Fixed assets (net block) 12,35,000 General reserve 70,000 Sundry Debtors (unsecured and goods) 4,00,000 Loan from state financial corp 3,00,000 Staff advance 97,400 Provision for Taxation 11,000 Cash on hand 60,000 Net profit for the year 2,70,000 Bank balance 4,94,000 Profit and Loss A/c 1,00,000 Share issue Expenses 26,600 (opening balance) Bills Receivable-trade 58,000 Short term Loans 50,000 Investments (at cost) 75,000 Sundry Creditors 1,40,000 Unclaimed dividend 5,000 29,46,000 29,46,000 Additional Information 1) Transfer to general reserve Rs.50,000 2) Directors recommended 6% dividend 3) Out of debtors, debts due for more than 6 months were 52,000 4) Sundry creditors included creditors for goods Rs.1,05,000 while remaining for expenses

21 2. What is analysis of financial statements? Explain its needs 3. What are types of Financial Analysis? Roll no The following balance appeared in the books of ABC Ltd. As on 31 st march, 2016 Particulars Debit Credit Building (at cost) Purchase and Sales 9,00,000 30,05,418 65,03,682 Manufacturing Expenses Establishment charges General charges Machinery (at cost) Cash at bank 21,00,000 1,60,884 18,64,68 13,80,000 4,33,440 Directors fees Interest on investment Surplus i.e. balance of statement of profit and loss (1/4/2015) Furniture at cost Opening stock Book debts Investment (long term) Provision for depreciation for fixed assets Advance payment of income tax Equity shares of Rs.10 each fully paid General reserve Unclaimed dividend Trade creditors Staff provident fund 10,800 30, ,2,348 13,94,280 17,33,700 3,00,000 51,264 1,01,088 5,46,000 36,00,000 13,80,000 3,156 2,57,148 2,25,000

22 1,26,67,338 1,26,67,338 From the following information prepare company s Balance sheet as at 31 st march 2016 and the statement of profit and loss for the year ended on that date: 1) Stock on 31 st march, 2016was valued at Rs.8,38,080 2) Provide Rs. 1, 14,000 for depreciation on fixed assets and Rs.48, 000 for managing directors remuneration. 3) The directors propose a dividend of 8% after transfer of Rs. 2, 10,000 to general reserve. 4) Make a provision of Rs.3,00,000 for income tax 5) Interest accrued on investments amounts to Rs.10, What are the steps in Financial Analysis? 3. What are the tools of Financial Analysis?

23 Roll no On April 1 one of the current year, the board of directors of Dowell Ltd. Wishes to know the amount of working capital that will be required to meet the programme of activity they have planned for the year: The following information is available: 1) Issued and paid-up capital, Rs.2,00,00 2) 5% Debentures (secured on assets), Rs.50,000 3) Fixed assets values at Rs.1, 25,000 on March of the previous year. 4) Production during the previous year was 60,000 units; it is planned that this level of activity should be maintained during the present hear. 5) The expected ratios of cost to selling price are- raw materials 60 per cent, directs wages 10 percent and overheads 20 percent. 6) Raw materials are expected to remain in store for an average of two months before these are issued for production. 7) Each unit or production is expected to be in process in a month. Full unit of raw materials is required in the beginning of production. 8) Finished goods will stay in warehouse for approximately 3 months. 9) Creditors allow credit for 2 months from the date of delivery of raw materials. 10) Selling price per unit is Rs.5 11) There is regular production and sales cycle 12) Prepare: a) Working capital requirement forecast; and b) An estimated profit and loss account and balance sheet at the end of the year. 2. What do you mean by comparative financial statements? How are these prepared? Explain their utility 3. What do you mean by common size financial statements? How are these prepared? Explain their limitations

24 Roll no From the following information given by M/s Q Ltd. Prepare estimated working capital for the year ended 31 st March ) Estimated level of activity units per year (52 years in a year) 2) Cost of raw materials per unit is Rs.5 3) Cost of labor per unit- 4% of raw materials 4) Cost of overheads per unit- 50% of labor. 5) Profit per unit is 200% of overheads. 6) Stock of raw materials- 4 weeks 7) Processing period -4 weeks 8) Stock of finished goods- 4 weeks 9) Credit allowed to debtors- 6 weeks 10) Credit allowed by creditors- 4 weeks 11) Time lag in payments of wages- 4 weeks 12) Time lag in payments of overheads-2 weeks 13) Cash and bank balance- Rs ) Debtors are calculated on sales basis 15) Purchased against cash- 20% 16) All activities are spread evenly thought out the year 17) During production process wages and overheads accrue evenly (Oct 2011). 2. What is meant by Gross Working Capital? 3. What is Net Working Capital

25 Roll no The following information is presented by Radhika manufacturing Ltd. For the year Estimated yearly production= units Raw materials= Rs.5 Direct labor= Rs.3 Overheads =Rs.2 Selling price= Rs.12 1) The company extends 2 months credit to the debtors 2) The company maintains one month stock of material 3) The company maintains one month stock of finished goods 4) The processing period is one month 5) The company is allowed two months credit by the suppliers 6) Wages and overheads are paid one months in arrears 7) The cash and bank balance is expected to be Rs ) There is regular purchase, production and sales cycle 9) During production process wages and overheads accrue evenly 10) Debtors are to be calculated on cost basis 11 ) 20% of the customers pay one month in advance 2. What are the sources of Short Term Working Capital? 3. What is meant by Variable Working Capital

26 Roll no From the following information provided by M/s P and Co. Pvt. Ltd. prepare a statement showing working capital requirement for the year ) Estimated sales for the year 2014 Rs ) Cost structure a) Raw materials- 60% b) Direct labor- 20% c) Overheads- 10% 3) Selling price Rs.20 per unit 4) The raw materials will remain in stock for 2 months 5) Materials will remain in process for 1 month 6) The finished goods will remain in stock for one month 7) The customers will be allowed a credit for 2 months 8) The suppliers will be allowed a credit of 1 month 9) The time lag in the payment of wages will be 1 month 10) The time lag in the payment of overheads will be half month 11) The cash and bank balance is expected 25% of debtors 12) Provide margin and safety 13) Calculate debtors and selling price 2. Explain the concept of Operating Cycle 3. What are the stages Of Operating Cycle?

27 Roll no The following information is presented by Vijay &Co.Ltd for the year. Calculate the working capital estimate for annual sales of units Raw materials= Rs.40 Direct labor= Rs.20 Overheads= Rs30 Profit= Rs.30. 1) Production and sales takes place evenly throughout the year 2) Materials is on 8 weeks of credit 3) Materials remains on stock for 8 weeks 4) Processing period is of two weeks 5) Finished goods remains in stock for ten weeks 6) Customers are given nine weeks credit 7) Time lag in the payment of wages is 4 weeks 8) Time lag in the payment of overheads is 2 weeks 9) Cash and bank balance is maintained at Rs ) Calculates debtors on sales 2. Factors affecting the Size of Receivable 3. Benefits of Maintaining Receivable

28 Roll no From the following information provided by M/s Nirmala products Pvt. Ltd. Prepare a statement showing working capital requirement for the year ) Estimated for the year 2014 Rs ) Cost structure Raw materials- Rs9 Direct labors- Rs4 Overheads- Rs.6 3) Selling price Rs.22 per unit 4) The raw materials will remain in stock for 30 days 5) Materials will remain in process for 30 days 6) The finished goods will remain in stock for 30 days 7) Time lag in the payment of customer is 60 days 8) Time lag in the payment of overheads 30 days4 9) Time lag in the payment of wages is 15 days 10) The supplies will allow a credit of 30 days 11) All sales are on credit except 10% sales which are on cash basis 12) The cash and the bank balance is expected to be Rs ) Production and sales are evenly spread throughout the year 14) Company works for 360 days during the accounting year 15) Calculate debtors at cost basis 2. Determinants of Credit Policy/Variables of credit policy 3. Monitoring of Accounts Receivable

29 Roll no Ruby manufacturing company gives the following details for the year Calculate the working capital estimate 1) Estimate level of activity p.a. Raw materials- Rs.20 Direct labor- Rs.8 Overheads- Rs.16 Selling price- Rs.50 2) Production ad sales takes place evenly during the year 3) Credit allowed by supplies 2 week 4) Materials remains in stock for 4 weeks consumption 5) WIP 2 weeks 6) Finished goods remains in stock for 2 weeks 7) Credit allowed for debtors 3 weeks 8) Time lag in the payment of wages and overheads 1 week 9) Cash and bank balance is maintained at Rs ) Provide a margin of safety at 10% 11) Calculate debtors on sales 12) 25% purchase and 20% sales are against cash 2.Short notes on: Optimum size of receivables 3.Short notes on ABC analysis of Receivables

30 Roll no PQR Ltd. Has sales of 50, 00,000. Average collection period is 50 days, bad debts losses are 5% of sales and collection expenses are Rs.50, 000. The cost of funds is 15%. The company has two alternative collection programmes: Programme 1 Programme 2 Average collection period reduce to 40 days 30 days Bad debts losses reduced to 4% of sales 3 % of sales Collection expenses Rs.1,00,000 Rs.1,60,000 Evaluate which programme is viable. Assume 1year= 365 days 2. ABC Ltd. Has a present annual sales of 20,000 units at Rs.200 per unit. The variable cost is 200 per unit and the fixed cost amount to Rs.4, 00,000 per annum. The present credit period allowed by the company is 1 month. The company is considering the proposal to increase the credit period to 2 months and 3 months and has made the following estimates: Existing Proposed Credit policy 1 month 2 month 3 month Increase in sales - 15% 30% % of bad debts 1% 3% 5% There will be increase in the fixed cost by Rs.65,000on account of increase of sales beyond 25% of present level 2.What is Financial Statement? Explain its types 3. Explain the nature of financial statement

31 Roll no PK Ltd. Manufacturers readymade garments and sells them on credit basis through a network of dealers. Their present sale is Rs.60 lakh per annum with 20days credit period. The company is contemplating an increase in the credit period with a view to increasing sales. Present variable costs are 70% of sales and the total fixed cost Rs.8 lakhs per annum. The company expects pre-tax return 25%. Some other details are gives as under: Proposed credit policy Average collection period (days) Expected annual sales (Rs. Lakhs) Required: which credit policy should the company adopt? Present your solution in tabular form. Assume 360 days a year. Calculations should be made up to 2 digits after decimal. 2. What are the objectives of Financial statements? 3. What are the importance/uses of Financial Statements

32 Roll no SSK Ltd. Dealing in a sports goods, has an annual sale of Rs.75 lakhs and currently extending 30 days credit to the dealers. It felt that sales can pickup considerable if the dealers are willing. To carry increased stocks. But the dealers have difficulty in financing their inventory. The firmis therefore considering shift in credit policy. The following information is applied: 1) The average collection p[period is now 30 days. 2) Variable cost is 80% on sales 3) Fixed cost Rs.18,00,000 per annum. 4) Required (per-tax) return on investment-20% Credit policy Average collection periods (days) Annual sales (Rs. In lakhs) A B C D Determine which policy the company should adopt, assuming that 1 year= 360 days and debtors are values at total cost, (for the purpose of calculation of investment in debtors). 2.What are the steps in Financial Analysis? 3. What are the tools of Financial Analysis

33 Roll no ) Following is the Profit and Loss a/c and Balance Sheet of Adhiraj Ltd. Profit and Loss Account for the year ended31st March 2014 Particulars Amount (Rs.) Particulars Amount (Rs.) Opening Stock Sales Purchases Closing Stock Wages Interest Received 5000 Factory Expenses Administrative Expenses Selling Expenses Interest Paid Tax Provision Net Profit Balance Sheet as on 31 st March 2014 Liabilities Amount (Rs.) Assets Amount (Rs.) Equity Share Capital (Rs Land and Building each) 9% Preference Share Capital Machinery % Debenture Furniture Reserve Goodwill Profit &Loss A/c Patents Short Term Loan A/c Vehicles Bank Overdraft Investments Sundry Creditors Stock Bills Payable Debtors Provision for Tax Bills Receivables Proposed Dividend Find out the following ratios: a) Return on Capital Employed b) Return on Proprietors Fund c) Return on Equity Share Capital d) Earnings Per Share e) Debtors Turnover Ratio & Debtors Collection Period in Months f) Creditors Turnover Ratio & Creditors Velocity Period in Months 2. What are the steps in Financial Analysis? 3. What are the tools of Financial Analysis

34 Roll no Profit and Loss Account and Balance Sheet of Milind Products: Profit and Loss A/c for the year ended 31 st March 2014 Particulars Amount (Rs.) Particulars Amount (Rs.) Cost of Goods Sold Sales Operating Expenses Interest Provision for Taxation Net Profit Provision for Dividend Balance b/f Balance c/f Net profit b/d Balance Sheet as on 31 st March 2014 Liabilities Amount (Rs.) Assets Amount (Rs.) Equity Share Capital Land and Building (Rs. 10 each) 10% Preference Share Capital Plant and Machinery (Rs. 100 each) General Reserves Copyrights Profit and Loss A/c Furniture Securities Premium Stock % Debentures Debtors Public Deposits Bills Receivables Accounts Payable Cash and Bank Bank Overdraft Advance Tax Provision for Taxation Provision for Dividend Closing Stock is Rs less than the opening stock. 75% of the sales are credit sales. Market price of Each Share is Rs. 62. Find out the following ratios: a) Return on Capital Employed b) Return on Proprietors Fund c) Return on Equity Share Capital d) Earnings Per Share e) Debtors Turnover Ratio & Debtors Collection Period in Months f) Price Earnings Ratio g) Dividend Payout Ratio

35 h) Debt Service Ratio 2. What do you mean by comparative financial statements? How are these prepared? Explain their utility 3. What do you mean by common size financial statements? How are these prepared? Explain their limitations

36 Roll no Following is the Revenue Statement of Prodent Enterprise: Profit and Loss account for the year ended 31 st March 2014 Particulars Amount (Rs.) Particulars Amount (Rs.) To Opening Stock By Sales To Purchases By Closing Stock To Carriage Inward 4275 By Interest Received In Investment 2700 To Office Expenses To Sales Expenses To Loss on Sales of Fixed Assets 1200 To Net Profit You are required to prepare Vertical Income Statement and Find the following Ratios: a) Gross Profit Ratio b) Net Profit Ratio c) Operating Ratio d) Operating Profit Ratio e) Administrative Expense Ratio f) Selling & Distribution Ratio g) Stock Turnover Ratio 2. What are the importance/uses of Financial Statements 3. What are the limitations of financial statements

37 Roll no Profit and Loss Account of Hind Traders: Particulars Amount (Rs.) Particulars Amount (Rs.) Sales Stationery, postage etc 2500 Purchases Depreciation on office furniture 9300 Opening Stock Other office Charges Closing Stock Provision for taxes Sales Return Dividend on Shares 9000 Salaries to Salesman Profit on Sale of Shares 3000 Advertising 4700 Loss on Sale of Assets 4000 Salesman s Travelling 2000 Salaries to Office Staff Rent for Office 2700 Find out all the Profit and Loss Ratios except Expense Ratio. 2. Short notes on : Ageing Schedule 3. Short notes on :Measuring Day s Sales in Outstanding (DOS

38 Roll no 2151 Q1) From the following data provided by M/s Alpha Ltd, estimated working capital requirement for the year ended 31 st March a) Estimated activity for the year units (52 weeks) b) Raw Material remains in stock for 2 weeks and production cycle takes 2 weeks c) Finished goods remaining in stock for 2 weeks. d) 2 weeks credit is allowed by suppliers. e) 4 weeks credit is allowed to debtors. f) Time lag in payment of wages and overheads is 2 weeks each. g) Cash and Bank Balance to be maintained Rs h) Selling Price per unit Rs. 15 i) Analysis of cost per unit as follows: 1) Raw Material is 33 1/3 % of sales. 2) Labour and overheads in the ratio of 6: 4 per unit. 3) Profit is at Rs.5 per unit. Assume that operations are evenly spread throughout the year. Wages and overheads accrue similarly. Manufacturing process required feeding of material fully at the beginning. Degree of work-in-progress is 50%. Debtors are to be estimated at selling price. 2. Factors affecting the Size of Receivable 3. Benefits of Maintaining Receivable

39 Roll no From the following figures, prepare an estimate of the working capital: Production units Selling Price per unit Rs. 10 Raw Material 60% of selling price Direct Wages 1/6 th of Raw Material Overheads Twice the direct wages Material in Hand 2 months requirement Production Time 1 month Finished Goods in Stores 3 months Credit for material 2 months Credit allowed to customers 3 months Average Cash Balance Rs Wages and Overheads are paid in the beginning of next month. In production all the materials are charged in the initial stage and wages and overheads accrue evenly. 1. Determinants of Credit Policy/Variables of credit policy 2. Monitoring of Accounts Receivable

40 Roll no 2159 Q.1 The management of Kaka Ltd. Has asked you to prepare an estimate showing the working capital requirement for , along with estimated cost sheet. Present Position 2012/13 Operating Capacity 40% giving output of units for the year. Cost Structure per unit:- Raw Material Rs. 20 Direct Labour Rs. 15 Overheads Rs. 10 Profit Rs. 05 Estimates for the next year Operating Capacity 60% Cost Structure Raw Material cost increase by 10% Direct Labour cost to increase by 20% Overheads to increase by 20% Selling Price to increase by 20% The following further information is available: 1. The purchase, production and sales pattern is assumed be even throughout the year 2. The raw materials will remain in stock for 1 month. 3. The production process will take 1 month wherein labour and overheads accrue evenly during the process. 4. The finished goods will remain in the stock for 2 months 5. The customers will be allowed a credit for 2 months 6. The suppliers will allow a credit of 1 month. 7. The time lag in payment of labour will be 1 month 8. The time lag in payment of overheads will be half a month 9. The cash and bank balance is expected to be Rs Calculate debtors on cost basis % of the purchases will be on cash basis. 2.Define and explain the meaning of receivable management 3. Costs of Maintaining Receivable

41 Roll no 2182 Q.1) A factory produces units during the year and sells Rs.50 per unit. Cost Structure of a product is as follows: Raw Materials 55% Labour 18% Overheads 17% Total Cost 90% Profit 10% Selling Price 100% The following additional information is available: a) The activities of purchasing, producing and selling occur evenly throughout the year. b) Raw Materials equivalent to 1 ½ month s supply stored in godown. c) The production process takes 15 days. d) Finished goods equal to one month s production are carried in stock e) Debtors get 1 month credit f) Creditors allow 2 month s credit g) Time lag in payment of wages and overheads is 1 month. h) Cash and Bank Balance is to be maintained at 15% of the working capital. i) 25% of purchases are for cash. Draw a forecast of working capital requirements of the factory. 2.What are the sources of Short Term Working Capital? 3.What is meant by Variable Working Capital?

42 Roll no 2193 Q.1) The following balances are extracted from the financial statements of Maganlal Products Ltd. Prepare a Balance Sheet in vertical format. Particulars Amount Particulars Amount Bank Loan Preliminary Expenses % Preference Share Capital Equity Share Capital at Rs each Investments Closing Stock Trade Receivables Bank Overdraft Trade Payables & Debentures Goodwill Bills Payable Bills Receivable Land & Building Plant & Machinery Cash and Bank Balance Profit & Loss A/c (Cr.) Furniture Unclaimed Dividend General Reserve Prepaid Expenses Advance Tax Provision for Taxation Proposed Dividend Briefly Explain the various advantages of Working Capital 3. Describe the various determinants of Working Capital in business concern

43 Roll no 2199 Q.1) Following is the Trial Balance of Anupama Ltd. as on 31 st March, Particulars Amount (Rs) Sales Fixed Assets Bills Receivable Bills Payable Cash and Bank Balance Opening Stock Bank Overdraft Purchases Administrative Expenses Legal Expenses Salaries Advertisement Warehouse Rent Depreciation on Machinery Interest on Bank Overdraft Equity Share Capital General Reserve Laptop Repairs Direct Expenses Investment Debtors Creditors Closing Stock as on 31 st March 2015 was Rs Prepare Vertical P & L and Balance Sheet. 2. What is meant by Gross Working Capital? 3. What is Net Working Capital?

44 Business Planning and Entrepreneurship Management Roll no 2009 Concept and Need of Entrepreneurship Development Idea generation Sources-Development of product /idea New trends in entrepreneurship Women Entrepreneur Marketing, Finance Roll no 2019 Importance and significance of growth of entrepreneurial activities X-Efficiency Theory Social entrepreneurship Idea generation Marketing, Finance Roll no 2023 Institutional support to an Entrepreneur Channel of Marketing qualities of entrepreneur Theory of Profit by Knight Environmental scanning Roll no 2025 New trends in entrepreneurship Socio-Cultural factors Market and Feasibility Analysis Role of Entrepreneurial culture in Entrepreneurship Development. Importance and significance of growth of entrepreneurial activities

45 Roll no 2150 Problems faced by women entrepreneurs Social responsibility of NGO s Creating entrepreneurial venture Contingency planning Milestones Roll no 2157 Special schemes for women entrepreneurs Advantages of environmental scanning Schemes for women entrepreneurs Role of NABARD Features of Intrapreneurs

46 Consumer behaviour Roll no Who is seasonal buyer? 2. What is meant by customer profiling? 3. What is high involvement buying?. Explain with example 4. What is meant by information seeker? 5. Explain skimming pricing. Roll no Who is discount buyer 2. What is low involvement buying? Explain with example 3. Explain the features of consumer behaviour 4. What is family life cycle 5. Explain the buying role. Roll no Explain the various types of buying behaviour 2. Explain the social factors affecting consumer behaviour 3. Explain the nature of consumer involvement 4. What is meant by Consumer behaviour? 5. What is Cognition? Roll no What is meant by Decision making by buyer? 2. What is meaning of the term Buying role 3. What is meant by market Segmentation? 4. Explain the importance of consumer behaviour? 5. Explain the nature of consumer behaviour? Roll no Who is seasonal buyer?

47 2. What is meant by customer profiling? 3. Explain the features of consumer behaviour 4. What is family life cycle 5. Explain the importance of consumer behaviour? Roll no Who is discount buyer 2. What is low involvement buying? Explain with example 3. What is meant by information seeker? 4. Explain skimming pricing 5. What is family life cycle Roll no Explain the various types of buying behaviour 2. Explain the social factors affecting consumer behaviour 3. What is meant by Decision making by buyer? 4. What is meaning of the term Buying role 5. What is meant by information seeker? Roll no Explain the 4 p s of marketing mix in studying consumer behaviour 2. Explain the features of consumer behaviour 3. What is family life cycle 4. What is meant by Decision making by buyer? 5. What is meaning of the term Buying role Roll no What is meant by information seeker? 2. Explain skimming pricing 3. Explain the 4 p s of marketing mix in studying consumer behaviour 4. Explain the features of consumer behaviour 5. What is family life cycle

48 FOUNDATION COURSE - ENVIRONMENTAL MANAGEMENT Roll no Concept of Ecosystem 2Causes OF Environmental degradation 3Wildlife Protection Act. 4Concept of Organic farming 5Concept of ISO Roll no Causes of land pollution 2Concept of Ecology 3Concept of solid waste 4Importance of sustainable development. 5Concept of Environmental auditing. Roll no Concept of E- waste 2Types of pollution 3Food chain 4Waste management projects 5Salient features of Water Act Roll no Causes of soil pollution 2Disaster management cycle.

49 3Concept of Eco-tourism 4Concept of food web 5Define Air Act Roll no causes and effects of Global warming. 2types of Natural resources 3consumerism as a cause of waste 4Concept of biomedical waste. 5Importance of sustainable development. Roll no Causes of water pollution 2Anthropogenic waste 3Eco-friendly packaging 4Green marketing 5Energy flow pyramid

50 INFORMATION TECHNOLOGY ROLL NO 2009 Explain types and levels of Information system. 1) Write the steps for editing document in MS Office. 2) Write short note on information. 3) Explain the term Cross Reference. 4) Write the steps for editing a spreadsheet. Roll no ) Explain success and failure of information technology. 2) Write short note on database. 3) Write the steps in formatting document in MS Office. 4) Write and explain the steps for creating spreadsheet. 5) Write down the steps for creating slides. Roll no2052 1) Explain major areas of IT application in management. 2) Explain management information system in brief. 3) Explain designing a title page in word? 4) Write the steps for changing types of chart. 5) Explain how to insert picture in PowerPoint. Roll no ) Explain Knowledge based system and expert system. 2) Explain Widows operating system. 3) Explain the use of Smart Art. 4) Explain the basic function of spreadsheet. 5) Explain how to insert videos in PowerPoint. Roll no2070 1) Explain Linux Operating System. 2) Write short note on Transaction Processing System. 3) Write down the steps for Smart Art.

51 4) Explain the advance function of spreadsheet. 5) Write the steps for creating presentation. Roll no2108 1) Write the steps for editing document in MS Office. 2) Explain major areas of IT application in management. 3) Write short note on information. 4) Write and explain the steps for creating spreadsheet. 5) Write down the steps for creating slides. Roll no 2150 Roll no ) Explain the basic function of spreadsheet. 2) Explain how to insert videos in PowerPoint. 3) Explain Linux Operating System. 4) Write short note on Transaction Processing System. 5) Write down the steps for Smart Art. 1) Write the steps in formatting document in MS Office. 2) Write short note on database. 3) Explain success and failure of information technology. 4) Write the steps for changing types of chart. 5) Explain how to insert picture in PowerPoint.

52 Social marketing Roll no 2006 a. What is social Marketing? Explain its features. b. Discuss the major difference between Commercial Marketing and Social Marketing. c. Discuss the bases of Market segmentation. d. Explain the criteria for evaluating Market Segmentation e. Explain the marketing mix for social marketing. Roll no2009 a.write a note on evolution of social marketing. b. What are the factors affecting pricing c.explain the health belief model. d.discuss the need for marketing savings e. What are the social issues of Youth? Roll no 2018 a. Explain the features of social marketing b. Write a note on environment in social marketing c. Explain the characteristics of Educational services. d. Explain the different types of habits. e. Explain the different Pricing strategies

53 Roll no 2025 a. Explain the importance of social marketing b. Write a note on NGO c. Explain the Categories of adopters d. Discuss the Levels of products e. Explain the impact of technological forces Roll no 2041 a. Explain the health belief model. b. Discuss the challenges of social Marketing. c. Explain the theory of planned behavior d. Discuss the pricing objectives e. Explain the mix of educational services Roll no 2068 a. Write a note on UVP b. Describe the need of social marketing c. Explain the Social cultural forces d. Explain the different types of positioning e. Explain the steps in targeting Roll no 2079 a. Explain the impact of Physical forces b. Explain the need for social marketing. c. Discuss the challenges of social Marketing. d. Distinguish between commercial marketing & social marketing. e. Explain marketing mix in social marketing

54 Roll no 2031 a. Explain the impact of economic forces b. Explain the bases of segmentation c. Explain the social product branding decision d. Developing promotion mix for social product e. Explain the ecological model Roll no 2033 a. Explain the impact of technological forces b. What is health education? c. What is micro environment? d. Explain marketing mix in social marketing e. Distinguish between commercial marketing & social marketing.

55 STRATEGIC MANAGEMENT Roll no 2006 What is business policy? Explain its nature and characteristics Explain internal environment analysis. Discuss the models of strategy making. What is strategy evaluation? Explain its nature and characteristics. What is a vision statement? What are its essentials? Roll no 2023 Define business policy. Discuss its importance to business firms. Discuss external environment analysis. What is strategic analysis? Explain its tools and techniques. Discuss the steps in strategic evaluation process. Explain the significance of objectives. Roll no 2024 Define strategic management. Explain its nature and characteristics. Discuss the techniques of scanning environment. What is strategy choice? Explain the process of strategy choice. Bring out the importance of strategic evaluation. What are the steps involved in setting up of business objectives? Roll no 2025 Explain the importance of strategic management to business organisations. Explain the importance of SWOT analysis. What are the factors influencing strategic choice? Explain BCG matrix as a technique of portfolio analysis. Discuss the guidelines in setting business objectives. Roll no 2036 Explain the importance of strategic management to business organisations. What are the four grand strategic alternatives, according to W.Glueck and L.Jaunch? Discuss General Electric s 9 Cell Matrix. What are the barriers affecting strategy evaluation? Discuss in brief the different types of business level strategies.

56 Roll no 2044 Discuss the process of strategic management. Explain the reasons for adopting stability strategy. Examine Michael Porter s 5 Forces Model. Discuss the evaluation techniques for strategic control. What are the factors/causes of resistance to organizational change? Roll no 2048 Explain the different levels of strategy. Discuss the approaches of stability strategy. Write a note on McKinsey 7S Framework. What is synergy? Explain the types of synergy. What are the reasons for organisational change? Roll no 2067 Define strategy. Explain its nature and characteristics. Discuss the reasons for adopting growth strategy. Discuss the steps in strategy implementation. Explain the techniques for operational control. What are the measures to overcome resistance to change? Roll no 2068 What is SBU? What are the guidelines for forming SBU s? Explain the different retrenchment strategies? What is project implementation? Discuss its phases. Discuss important procedural requirements in strategy implementation. Discuss the steps in strategy implementation. Roll no 2079 State and explain the advantages and limitations of SBU s. What are the essentials of a turnaround strategy? Explain the strategy structure relationship. Bring out the evaluation of synergy. Discuss important procedural requirements in strategy implementation. Roll no 2103 What do you mean by strategic intent? Explain its importance. Explain the steps in turnaround strategy.

57 Discuss the stages in organizational development with special reference to strategy structure. Discuss synergy as a component of strategy and its relevance. Explain the strategy structure relationship. Roll no 2157 Explain the importance of mission statement. What are its essentials? What are the reasons for adopting divestment strategy? Discuss two main structural mechanisms to implement strategy. What is management of change? Explain its nature. Explain the steps in turnaround strategy. Roll no 2159 What is internationalization strategy? Explain the types of international strategies. What are the strategic options to enter in international markets? Discuss the role of effective leadership in strategy implementation. Discuss the process involved in management of change. What are the reasons for adopting divestment strategy?