FINANCIAL MANAGEMENT,University Of Pune Question Paper, 2010 Question Paper,P. G. D. B. M. (Semester - II)

University Of Pune Question Paper
P. G. D. B. M. (Semester - II) Examination - 2010
FINANCIAL MANAGEMENT
(Old 2005 Pattern)
Time : 3 Hours] [Max. Marks : 60
Instructions :
(1) Attempt any two questions from section I and section II.
(2) All the questions carry equal marks.
(3) Use of simple calculator is allowed.
SECTION - I
Q.1) What is Working Capital Management ? Discuss factors to be considered
while estimating working capital requirement.
Q.2) What do you mean by Bonus Shares ? What are the advantages to the
Company and the Investors due to issue of Bonus Shares ?
Q.3) What do you mean by Fund Flow Statement ? What are its objectives and
uses ?
Q.4) Write short notes : (Any Three)
(a) Functions of Finance Manager
(b) Joint Stock Company
(c) Commercial Paper
(d) Pay Back Period Method
(e) Current Ratio and Liquid Ratio
SECTION - II
Q.5) Calculate the following ratios :
(a) Gross Profit Ratio
(b) Net Profit Ratio
(c) Current Ratio
(d) Liquid Ratio
(e) Proprietary Ratio
 Prticulars               Amount             Particulars          Amount
Sales                         25,00,000          Fixed Assets   14,40,000
Cost of Sales            20,00,000              Net Worth   15,00,000
Net Profit               4,00,000         Debts (Long Term) 9,00,000
Inventory               8,00,000           Current Liabilities 5,00,000
Other Current Assets 7,00,000          Net Profit before
                                                           Tax and Interest  8,00,000
Q.6) The following is the information available for two firms A and B Ltd. :
                      (Rs. Lacs)
Particulars              A Ltd.          B Ltd.
Sales                        5.00            10.00
Variable Costs         2.00              3.00
Fixed Cost               1.50              4.00
Interest                     0.50             1.00
Calculate different leverages for both the firms.
Q.7) Calculate working capital requirement to manufacture 1,20,000 units of
output for a year. Given the following information :
Particulars              Cost per Unit (Rs.)
Raw Material               20
Direct Labour               5
Overheads                   10
Total Cost                    35
Profit                            10
Selling Price                 45
Additional Information :
(1) Minimum Cash Balance is Rs. 20,000.
(2) On an Average Stock of Raw Materials is held for two months.
(3) Work-in-progress is 50% completion stage will be half a month
of production.
(4) Finished Goods are held for an average one month.
(5) Credit extended by suppliers two months, and two months credit
is given to debtors.
(6) Cash Sales are 25% of total sales.
(7) Delay in Payment of Wages one month.
(8) Half a month delay in Payment of Overheads.
Q.8) Write short notes : (Any Three)
(a) Leasing and Hire Purchase
(b) Bonus Shares
(c) Time Value of Money
(d) Credit Rating
(e) Public Deposit

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