Download JNTUA MBA 3rd Sem Reg-Supple 2018 Nov Dec 12E01302 Working Capital Management Question Paper

Download JNTUA (JNTU Anantapur) MBA (Master of Business Administration) 3rd Sem Reg-Supple 2018 Nov Dec 12E01302 Working Capital Management Previous Question Paper

Code: 12E01302


MBA (Finance) III Semester Supplementary Examinations November/December 2018
WORKING CAPITAL MANAGEMENT
(For students admitted in 2014 (LC), 2015 & 2016 only)

Time: 3 hours Max. Marks: 60

Answer any FIVE questions
All questions carry equal marks
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1 Discuss the various techniques used for assessing working capital requirements.

2 Enumerate the recommendations of Daheja committee on working capital.

3 Discuss how Miller-Orr?s cash management model helps in determining the cash balance of a
firm.

4 Below are the summarized income and expenditure forecasts of XYZ ltd. for the months of
March to August, 2000:
Month
Sales (all
credit)
Purchases
(all credit)
Wages
Manufacturing
expenses
Office
expenses
Selling
expenses
Rs. Rs. Rs. Rs. Rs. Rs.
March 60,000 36,000 9,000 4,000 2,000 4,000
April 62,000 38,000 8,000 3,000 1,500 5,000
May 64,000 33,000 10,000 4,500 2,500 4,500
June 58,000 35,000 8,500 3,500 2,000 3,500
July 56,000 39,000 9,500 4,000 1,000 4,500
August 60,000 34,000 8,000 3,000 1,500 4,500
You are given the following further information.
(i) Plant costing Rs.16,000 is due for delivery in July payable 10% on delivery and the balance
after three months.
(ii) Advance tax of Rs.8,000 is payable in March and June each.
(iii) Period of credit allowed (a) by suppliers 2 months and (b) to customers 1 month.
(iv) Lag in payment of manufacturing expenses ? month.
(v) Lag in payment of all other expenses 1 month.
You are required to prepare a cash budget for three months starting on 1
st
May, 2000 when
there was a cash balance of Rs.8,000.

5 What are account receivables? Why companies have receivables? Discuss the factors
affecting the size of receivables.

6 (a) What are the motives for holding inventory?
(b) Define the term ?Materials requirement planning?. Explain its objectives.

7 (a) Explain any two approaches to financing the current assets.
(b) What are the benefits of consortium and syndication?

8 (a) Discuss the role of information technology in maintaining the working capital.
(b) What type of information is useful for effective working capital management?
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