Tamil Nadu Open University (TNOU) 2008 M.B.A /P.G.D.F.M -. - Question Paper

M.B.A. DEGREE/P.G.D.F.M. exam

JUNE 2008.

WORKING CAPITAL MANAGEMENT

Time : three hours Maximum marks : 75

ans for five marks ques. should not exceed two pages.

ans for 10/15 marks ques. should not exceed five pages.
PART A — (3 × five = 15 marks)

ans any 3 ques..

All ques. carry equal marks.
discuss the concept of working capital.
Distinguish ranging from fund flow and cash flow analysis.
discuss the criteria for judging the inventory system.
define the objectives of credit policy.
Write a short note on Non-Bank Finance.
PART B — (4 ´ 15 = 60 marks)
ans any 4 ques..
All ques. carry equal marks.
discuss the merits and limitations of ratio analysis.
explain the characteristics of Indian money market.
define different determinants of working capital of a concern.
How are the objectives of inventory management and cash management similar? discuss.
discuss the factors which affect the size of receivable in an organization.
discuss in detail the integrated short-term funds planning.
From the subsequent balance sheets of X Ltd. as on 31st December 2005 and 2006, you are needed to prepare funds flow statement.

Liabilities 2005
Rs. 2006
Rs. Assets 2005
Rs. 2006
Rs.
Share
capital
1,00,000
1,00,000 Good will 12,000 12,000
General
Reserve
14,000
18,000 Building 40,000 36,000
Profit and
Loss A/c
16,000
13,000 Plant 37,000 36,000
Sundry
Creditors
8,000
5,400 Investments 10,000 11,000
Bills
payable
1,200
800 Stock 30,000 23,400
Provision
for
Taxation

16,000

18,000 Bills
Receivables
2,000
3,200
Provision
for
doubtful
debts


400


600 Debtors 18,000 19,000
Cash at Bank 6,600 15,200
1,55,600 1,55,800 1,55,600 1,55,800
The subsequent additional info has also been provided :
(a) Depreciation charged on plant was Rs. 4,000 and on Building Rs. 4,000.
(b) Provision for taxation of Rs. 19,000 was made during the year 2006.
(c) Interim dividend of Rs. 8,000 was paid during the year 2006.

Earning:   Approval pending.