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Total No. of Questions : 13
[Total No. of Printed Pages : 4
UA-516
M.B.A. Plain/M.B.A.Fin./Fin. Mgt.) (F.T.)
IIIrd Semester (Reg./Ex./ATKT)
Examination, 2023-24
Paper - FFM-2/FFF-2
Working Capital Management
Time: 3 Hours]
[Maximum Marks : 80
SECTION - 'A'
Short Answer Type Questions
8X4=32
Note :- Attempt any four out of Eight questions. Each questions carry 08 marks.
1.
Gross Working Capital Concept focuses on relevance of Current Assets while Net working Capital Concept focuses on Business Liquidity. Elaborate and Comment.
2.
Comment on various Motives of Holding Cash.
3.
Elaborate on ABC Analysis of Inventory Management.
4.
Trade credit is most prominent financial force of modern business. Comment in context of Working Capital Sources.
5.
Consider the following for a company Suraj Industries Pvt Ltd.
Cost of Goods Sold-Rs 6,00,000
Beginning Inventory- Rs 1, 50,000
Closing Inventroy- Rs 2, 50, 000
Calculate the inventory turnover ratio
Cost of Goods Sold-Rs 6,00,000
Beginning Inventory- Rs 1, 50,000
Closing Inventroy- Rs 2, 50, 000
Calculate the inventory turnover ratio
6.
How should companies address working capital management following global changes in the economy and in industry struc-tures ?
7.
If a firm reduces the average are of its inventories, what effect might this action have on the cash cycle and on the firm's total sales ?
SECTION - 'B'
Long Answer Type Questions
16X3=48
Note :- Attempt any three out of five questions. Each question carry 16 mark.
8.
Do you think that adequate working capital enables a firm to exploit favourable market conditions ? Support your answer with proper reasons.
9.
Distinguish and Elaborate on matching, conservative and ag-gressive working capital financing strategies. Explain in con-text of Liquidity Vs Profitability Trade Off with Reference to Working Capital Management.
10.
Pheonix Electronics has used the Baumol Model to estimate its optimal cash balance to be Rs 10 lakhs. Its opportunity cost is 10% and there is a cost of Rs. 250 every time the marketable securities have to be converted into cash. Esti-mate the weekly cash usage rate ?
11.
Define Factoring and Briefly elaborate on role of factoring in recevivables management.
12.
Explain the valuation of inventory with examples using LIFO & FIFO.
13.
As a financial manager, what factors would you consider while estimating working capital requirements of a firm ?