Download JNTUH MCA 1st Sem R17 2020 November 841AE Accounting And Financial Management Question Paper

Download JNTUH (Jawaharlal nehru technological university) MCA (Master of Computer Applications) 1st Sem (First Semester) Regulation-R17 2020 November 841AE Accounting And Financial Management Previous Question Paper


S OCT 2020

R17

Code No: 841AE















JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD

MCA I Semester Examinations, October/ November - 2020

ACCOUNTING AND FINANCIAL MANAGEMENT

Time: 2 Hours















Max.Marks:75



Answer any five questions

All questions carry equal marks

----

1.

Discuss the salient features and benefits of accrual accounting system over cash based
accounting System.















[15]



















2.

Morningstar Ltd. is currently selling 20,000 units at a selling price of Rs.200. Its variable
cost per unit is 120. Annual Fixed Costs are Rs.7, 50,000.



a) Determine the operating profit at its current level of sales



b) Show the impact of a 10% increase in quantity of sales on its operating profit



c) Show the impact of a 10% decrease in variable cost on its operating profit



d) If the firm wants to achieve the breakeven point at 7,500 units, what should be the
new selling price?















[15]

used


3.

Dolphin Ltd. has reported a total assets Rs.65, 00,000. The cost of debt before taxes is 8%.
The risk-free rate is 8% and the beta of the firm is 1.5. The return from the market index for
2017 is 16%. The tax rate for the firm is 30%. Determine the weighted average cost of
capital of Dolphin Ltd. under the following capital structures:

a) 30% equity and 70% Debt b) 50% equity and 50% debt c) 60% equity and 40% debt.

[15]


4.

The following information is available for the two companies, Homecare Ltd. and Interior
Decors Ltd. for the Financial Year 2016, the first year of their operation.



(Rs. thousands)



Homecare

Interior

Cash

13,606

7,669

Debtors

23,045

19,951

Inventory

31,087

31,345

Other Current Assets

12,522

11,909

Current Liabilities

75,230

80,280

Revenue

115,225

79,804

Cost of Goods Sold

69,135

51,873

Operating Expenses

17,284

11,971

Interest on Borrowings

450

325

Tax rate

30%

30%

Preference Dividend

250

300

No. of Equity Shares of outstanding (in
thousands)

2000

2500



Determine the following ratios for the two companies and give your observations:
a) Gross Profit



b) Net Profit

c) Earnings per share

d) Times interest earned e) Working Capital.

[15]







S OCT 2020

5.

The following transactions were reported for Zandu Corporation Ltd. for the Financial Year
2016. The Cash balance at the beginning of the year was 10,500.
1) Borrowed cash from the bank: 30,000
2) Issued shares for cash: 40,000
3) Invested cash in the debentures of Beta Company: 25,000
4) Performed services and collected cash: 19,500
5) Paid cash for operating expense: 14,300
6) Purchased equipment for cash: 14,800
7) Paid dividends to shareholders: 850
8) Repaid the bank loan: 5,500
9) Paid interest on Bank Loan: 3000
10) Received interest on debentures: 2500
Required:
Classify the transactions into operating, investing and financing activities and determine
the cash balance at the end of the year.











[15]



6.

TS Industrials has provided the following information.



Current level of sales: 10,000 units



Selling Price per unit: Rs.150;

used



Variable Cost per unit: Rs.90;



Annual Fixed Costs: Rs.6, 00,000
Required: Prepare a flexible budget showing the operating profit at the following levels of
sales
a) 5000 units b) 7500 units c) 12,500 units

d) 15,000 units



[15]


7.

Explain the following concepts with suitable examples:



a) Master Budget



b) Profit-Volume Ratio

c) Make or Buy Decision
d) Margin of Safety
e) Relevant Range.

















[15]



8.

Harrison Engineers Ltd. is considering two mutually exclusive projects, A and B, which
require an initial outlay of Rs.50 million each. The cash flow estimates are given below:



Year

Project A Project B

1

11

38

2

19

22

3

32

18

4

37

10



a) Which project can be selected on the basis of payback period?
b) Which project can be selected on the basis of NPV, if the discount rate is 12%?
c) Which project can be selected on the basis of NPV, if the discount rate is 10%? [15]



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This post was last modified on 16 March 2023