Cochin University of Science and Techology (CUST) 2006 M.B.A Financial Analysis - Question Paper
MBA.F.2/06.4(b)
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M.B.A. DEGREE (FT) U SEMESTER EXAMINATION, MAY 2006
FINANCIAL ANALYSIS y
(Old scheme)
Maximum marks: 50
Time: 3 Hours
(Answer ALL questions)
(AH questions cany EQUAL marks)
(5x 10 = 50)
I. A. Explain the need for interpretation and analysis of financial statement.
OR ;
B. Explain the different tools and techniques of financial analysis.
II. A. Explain the ratios you would calculate to analyse the solvency, profitab lity and activity position of a firm.
OR
B. Using the following information, complete the balance sheet give below:
Total debit to net worth 0.5 to 1
Turn over of total assets (based on year end figures) 2
Gross profit 30%
Average collection period (based on 36) day year) 40 days
Inventory turn over (based on cost of goods sold and year-end inventory) 3 times
Acid test ratio 0.75 to 1
Balance Sheet | ||||||||||||||
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III. A. Describe the procedure followed for tie preparation of fund flow stat< ment. Explain the utility of fund flow analysis.
OR
B. Balance sheets of AUA on 1.1.2005 and 31.12.2005 were as follows: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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During the year machine costing Rs. 10,000/- (accumulated depreciatioi Rs.3,000/-) was sold for Rs.5,000/-. The provisions for depreciation against machinery as on 1.1.2)05 was Rs.25,000/- and on 31.12.2005 Rs.40,000/-. Dividend paid during the year amounted to Rs.10,000/-. Prepare cash flow statement.
IV. A. Enumerate the managerial uses of break even analysis.
OR
B. A company has just purchased patent rights to a new milling process for I .s.60,000/-. The patents are to run for a period of 3 years, after which they are to be renewed. The flture earnings after taxes are given below:
Years EAT
1 Rs. 10,000/-
2 Rs.10,000/-
3 Rs. 10,000/-Compute the following:
(i) Pay back period
(ii) Average rate of return
(iii) Internal rate of return
(iv) Net present value at 15% rate of discount
What are the basic strategies of efficient cash management ? Illustrate with suitable examples the effects of these on the operating cash requirements of a firm.
V. A. B.
OR
Justify the need for speedy receivable> collection. In this context biiefly explain concentration banking and lock box system.
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Earning: Approval pending. |