IMT-59: Financial Management-2014
IMT-59: Financial Management-2014
SECTION - A
Q1: Discuss briefly meaning and purpose of internal financial control.
Q2: Assume that a 10-year savings annuity of Rs. 2,000 per year is beginning at the end of current year. The payment of retirement annuity is to begin 16 year from now (the first payment is to be received at the end of year 16) and will continue to provide a 20-year payment annuity. If this plan is arranged through a saving bank that pays interest @ 7% per year on the deposited funds, what is the size of the yearly retirement annuity that will result?
Q3: Explain Capital Asset Pricing Model and its assumptions.
Q4: Differentiate between bullet bond and amortizing bond.
Q5: a. An investor has purchased 11% Bond of Rs. 100 repayable after 5 years at 99. Coupon is payable annually. Find out its yield to maturity.
b. An investor has purchased 11% Bond of Rs. 100 repayable 25% at the end of each year beginning from second year at 99. Find out its yield to maturity.
SECTION - B
Q1: Explain revenue based, asset based and capital based profitability ratios.
Q2: What do you mean by Capital Planning and Investment Control? Explain its phases also.
Q3: ABC Ltd. manufactures toys and other gift items. The research and development department has come up with an item that would make a good promotional gift for office equipment dealers. As a result of efforts by the sales personnel, the firm has commitments for this product.
To produce the quantity demanded, ABC Ltd. will need to buy additional machinery and rent additional space. It appears that about 25,000 sq. feet will be needed; 12500 sq. feet of presently unused space but leased at the rate of Rs. 3 per square foot per year, is available. There is another 12500 sq. feet available at the annual rent of Rs. 4 per square foot.
The equipment will be purchased for Rs. 9,00,000. It will require Rs. 30,000 in modification, Rs. 60,000 for installation and Rs. 90,000 for testing. The equipment will have a salvage value of about Rs. 1,80,000 at the end of the 3rd year. No additional general overhead costs are expected to be incurred.
The estimated revenues and costs for the product for the 3 years have been developed as follows
IMT SOLUTION
If the company sets a required rate of return of 20% after taxes, should this project be accepted?
Q4: What do you mean by cost of capital? Explain its significance also.
Q5: A ltd. needs finance of Rs. 10 lakhs for meeting its investment plans. It has Rs. 2,10,000 in the form of retained earnings available for investment purposes. The following are the future details.
IMT CDL ANSWERS
Compute over all weighted average after tax cost of additional finance.
SECTION - C
Q1: What are the causes of financial leverage? How is degree of financial leverage measured?
Q2: Explain arbitrage theory of capital structure. State two important shortcomings of the theory.
Q3: Explain the assumptions of Modigliani’s dividend irrelevance theory. Critically analyze how far those assumptions are tenable?
Q4: What do you mean by working capital? Explain objectives of working capital management.
Q5: Explain major sources of short term financing.
CASE STUDY - 1
The selected financial data for A, B, C companies for the year ended Dec. 1999 are as follows: -
IMT CDL SOLUTIONS FOR QUESTION
Prepare income statement of A, B, C.
CASE STUDY - 2
A performa cost sheet of a company provide the following particulars:
IMT CDL SOLUTION
The following further particulars are available:
Raw material in stock, on average one month; materials are in process, on average half a month; finished goods in stock, on average one month. Credit allowed by suppliers is one month; credit allowed to debtors is two months; lag in payment of wages is 1 ½ weeks; lag in payment of overhead expenses is one month; one fourth of the output is sold against cash; cash in hand and at bank is expected to be Rs. 25,000. You are required to prepare a statement showing the working capital needed to finance a level of activity of 1,04,000 units of production.
You may assume that production is carried on evenly throughout the year, and wages and overheads accrue similarly.
IMT-58: Management Accounting-2014
IMT-58: Management Accounting-2014
SECTION – A
Q1: Distinguish between Management accounting and Financial Accounting.
Q2: What are the methods by which semi variable cost can be split in its fixed and variable elements?
Q3: Medical aid co. manufactures a special product “AID”. The following particulars were collected for the year 1998:
IMT SOLVED ASSIGNMENTS
Q4: What do you understand by JIT?
Q5: Explain the term administrative overheads and briefly discuss three methods of treatment thereof in cost accounts.
SECTION - B
Q1: How does ABC differ from the traditional costing approach?
Q2: What is service costing? Describe the type of industries in which such a system would be suitable
Q3: Calculate the cost of each process and total cost production from the data given below:
IMT SOLUTION
The indirect expenses Rs. 1,275 should be apportioned on the basis of wages.
Q4: What are the advantages of variable costing?
Q5: What do you mean by break-even analysis and explain its uses and applications?
SECTION - C
Q1: Explain advantages and limitations of budgeting.
Q2: What is transfer prices? What are different types of transfer prices?
Q3: Define expense centre. What is the suitability of the measure of performance in an expense centre?
Q4: Differentiate between ‘sunk’ and ‘avoidable’ costs. What is the relevance of such a distinction for short-run decisions?
Q5: The details regarding composition and the weekly wage rate of labour force engaged on a job scheduled to be completed in 30 weeks are as follows:
IMT MBA SOLVED ASSIGNMENTS
The work is actually completed in 32 weeks. Calculate the various labour cost variances.
CASE STUDY - 1
A Ltd. furnishes the following data relating to the year 2008.
1st half of the year 2nd half of the year
Sales (Rs.) 45,000 50,000
Total cost (Rs.) 40,000 43,000
Assuming that there is no change in prices and variable cost and that the fixed expenses are incurred equally in the two half year period, calculate-
1. P/V Ratio
2. Fixed expenses
3. Break even sales
4. Percentage of margin of safety to total sales.
CASE STUDY - 2
Goodluck Ltd. is currently operating at 75% of its capacity. In the past two years, the level of operations were 5f5% and 65% respectively. Presently, the production is 75,000 units. The company is planning for 85% capacity level during 2013 – 2014. The cost details are as follows:
IMT CDL ASSIGNMENTS
Profit is estimated @ 20% on sales.
The following increases in costs are expected during the year.
IMT SOLVED ASSIGNMENTS
Required: Prepare flexible budget for the period 20X1 – 20X2 at 85% level of capacity. Also ascertain profit and contribution
IMT-57: Financial Accounting-2014
IMT-57: Financial Accounting-2014
SECTION - A
Q1: "Accounting is carried out for various types of business ownership". Comment.
Q2: Explain characteristics of a liability.
Q3: Analyse the following transactions and events, and identify debit-credit giving reasons:
i. Mahesh started business with cash Rs. 10,00,000.
ii. Purchased plant & machinery worth Rs. 2,50,000.
iii. Opened a bank account in ICICI bank and deposited Rs. 50,000.
iv. Purchased goods worth Rs. 1,00,000 in cash from Mr. X.
v. Sold goods worth Rs. 80,000 to Mr. Y at 10% profit on cost.
Q4: AS-1 talks about three fundamental accounting standards, explain them.
Q5: How many types of journals are there explain them.
Section B
Q1: Explain advantages of day book.
Q2: On 31st March, 2014, Pass Book showed a balance of Rs. 25,000. Prepare a Bank Reconciliation Statement from the following particulars:
1. Cheques of Rs. 20,000 were deposited in Bank on 27th March, 2014, out of which cheques of Rs. 5,000 were cleared on 1st April, 2014. Rests are not cleared.
2. On 28th March, 2014, cheques were issued amounting to Rs. 15,000, out of which cheques of Rs. 3,000 were presented in March, Rs. 4,000 on 2nd April and rests were not presented.
3. Cheques of Rs. 10,000 were deposited in Bank on 28th march, 2014, out of which cheques of Rs. 4000 were cleared on 2nd April, 2014 and rest is dishonored.
4. Interest on investment collected by bank does not appear in the Cash Book Rs. 800.
5. A B/R of Rs. 9,000 previously discounted from the bank was dishonored on 30th March, 2014 but no intimation was received from the bank till 31st
6. Bank has debited Rs. 1,500 and credited Rs. 1,200 in our Account.
Q3: Explain meaning and purpose of trial balance
Q4: Prepare the Store Ledger Account on the basis of FIFO method:
mba solved assignments
Q5: What do you mean by dividend? Explain the dates which are relevant when accounting for dividends.
SECTION - C
Q1: Differentiate between operating revenue and other income.
Q2: Write a short note on cash and cash equivalents.
Q3: Briefly discuss the matters to be included in the Director’s report.
Q4: Cash is the lifeblood of business. How cash flow information helps users?
Q5: Explain revenue based, assets based and capital based profitability ratios.
CASE STUDY - 1
From the following information calculate:
a) Gross profit ratio
b) Inventory turnover ratio
c) Current ratio
d) Liquid ratio
e) Net profit ratio
f) Working capital turnover ratio
Sales Rs. 25,00,000; Cost of sales Rs. 19,20,000; Net profit Rs. 3,60,000; Average inventory Rs. 8,00,000; Other current assets Rs. 7,60,000; Fixed assets Rs. 14,40,000; Long term Debts Rs. 9,00,000; Current liabilities Rs. 6,00,000; Trade Creditors Rs. 2,00,000; Net profit before interest and tax Rs. 8,00,000.
CASE STUDY - 2
From the following information, prepare a cash flow statement of Crispin Ltd.
imt solved assignments
Additional Information:
a. Depreciation charged on fixed assets was Rs. 81,000.
b. An interim dividend of 15% was paid. Additional shares were issued on 31-03-14.
c. Preference shares were redeemed at a premium of 15%.
d. Fixed assets with a book value of Rs. 54,000 were sold at Rs. 33,750.
IMT-59: Financial Management-2014
SECTION - A
Q1: Discuss briefly meaning and purpose of internal financial control.
Q2: Assume that a 10-year savings annuity of Rs. 2,000 per year is beginning at the end of current year. The payment of retirement annuity is to begin 16 year from now (the first payment is to be received at the end of year 16) and will continue to provide a 20-year payment annuity. If this plan is arranged through a saving bank that pays interest @ 7% per year on the deposited funds, what is the size of the yearly retirement annuity that will result?
Q3: Explain Capital Asset Pricing Model and its assumptions.
Q4: Differentiate between bullet bond and amortizing bond.
Q5: a. An investor has purchased 11% Bond of Rs. 100 repayable after 5 years at 99. Coupon is payable annually. Find out its yield to maturity.
b. An investor has purchased 11% Bond of Rs. 100 repayable 25% at the end of each year beginning from second year at 99. Find out its yield to maturity.
SECTION - B
Q1: Explain revenue based, asset based and capital based profitability ratios.
Q2: What do you mean by Capital Planning and Investment Control? Explain its phases also.
Q3: ABC Ltd. manufactures toys and other gift items. The research and development department has come up with an item that would make a good promotional gift for office equipment dealers. As a result of efforts by the sales personnel, the firm has commitments for this product.
To produce the quantity demanded, ABC Ltd. will need to buy additional machinery and rent additional space. It appears that about 25,000 sq. feet will be needed; 12500 sq. feet of presently unused space but leased at the rate of Rs. 3 per square foot per year, is available. There is another 12500 sq. feet available at the annual rent of Rs. 4 per square foot.
The equipment will be purchased for Rs. 9,00,000. It will require Rs. 30,000 in modification, Rs. 60,000 for installation and Rs. 90,000 for testing. The equipment will have a salvage value of about Rs. 1,80,000 at the end of the 3rd year. No additional general overhead costs are expected to be incurred.
The estimated revenues and costs for the product for the 3 years have been developed as follows
IMT SOLUTION
If the company sets a required rate of return of 20% after taxes, should this project be accepted?
Q4: What do you mean by cost of capital? Explain its significance also.
Q5: A ltd. needs finance of Rs. 10 lakhs for meeting its investment plans. It has Rs. 2,10,000 in the form of retained earnings available for investment purposes. The following are the future details.
IMT CDL ANSWERS
Compute over all weighted average after tax cost of additional finance.
SECTION - C
Q1: What are the causes of financial leverage? How is degree of financial leverage measured?
Q2: Explain arbitrage theory of capital structure. State two important shortcomings of the theory.
Q3: Explain the assumptions of Modigliani’s dividend irrelevance theory. Critically analyze how far those assumptions are tenable?
Q4: What do you mean by working capital? Explain objectives of working capital management.
Q5: Explain major sources of short term financing.
CASE STUDY - 1
The selected financial data for A, B, C companies for the year ended Dec. 1999 are as follows: -
IMT CDL SOLUTIONS FOR QUESTION
Prepare income statement of A, B, C.
CASE STUDY - 2
A performa cost sheet of a company provide the following particulars:
IMT CDL SOLUTION
The following further particulars are available:
Raw material in stock, on average one month; materials are in process, on average half a month; finished goods in stock, on average one month. Credit allowed by suppliers is one month; credit allowed to debtors is two months; lag in payment of wages is 1 ½ weeks; lag in payment of overhead expenses is one month; one fourth of the output is sold against cash; cash in hand and at bank is expected to be Rs. 25,000. You are required to prepare a statement showing the working capital needed to finance a level of activity of 1,04,000 units of production.
You may assume that production is carried on evenly throughout the year, and wages and overheads accrue similarly.
IMT-58: Management Accounting-2014
IMT-58: Management Accounting-2014
SECTION – A
Q1: Distinguish between Management accounting and Financial Accounting.
Q2: What are the methods by which semi variable cost can be split in its fixed and variable elements?
Q3: Medical aid co. manufactures a special product “AID”. The following particulars were collected for the year 1998:
IMT SOLVED ASSIGNMENTS
Q4: What do you understand by JIT?
Q5: Explain the term administrative overheads and briefly discuss three methods of treatment thereof in cost accounts.
SECTION - B
Q1: How does ABC differ from the traditional costing approach?
Q2: What is service costing? Describe the type of industries in which such a system would be suitable
Q3: Calculate the cost of each process and total cost production from the data given below:
IMT SOLUTION
The indirect expenses Rs. 1,275 should be apportioned on the basis of wages.
Q4: What are the advantages of variable costing?
Q5: What do you mean by break-even analysis and explain its uses and applications?
SECTION - C
Q1: Explain advantages and limitations of budgeting.
Q2: What is transfer prices? What are different types of transfer prices?
Q3: Define expense centre. What is the suitability of the measure of performance in an expense centre?
Q4: Differentiate between ‘sunk’ and ‘avoidable’ costs. What is the relevance of such a distinction for short-run decisions?
Q5: The details regarding composition and the weekly wage rate of labour force engaged on a job scheduled to be completed in 30 weeks are as follows:
IMT MBA SOLVED ASSIGNMENTS
The work is actually completed in 32 weeks. Calculate the various labour cost variances.
CASE STUDY - 1
A Ltd. furnishes the following data relating to the year 2008.
1st half of the year 2nd half of the year
Sales (Rs.) 45,000 50,000
Total cost (Rs.) 40,000 43,000
Assuming that there is no change in prices and variable cost and that the fixed expenses are incurred equally in the two half year period, calculate-
1. P/V Ratio
2. Fixed expenses
3. Break even sales
4. Percentage of margin of safety to total sales.
CASE STUDY - 2
Goodluck Ltd. is currently operating at 75% of its capacity. In the past two years, the level of operations were 5f5% and 65% respectively. Presently, the production is 75,000 units. The company is planning for 85% capacity level during 2013 – 2014. The cost details are as follows:
IMT CDL ASSIGNMENTS
Profit is estimated @ 20% on sales.
The following increases in costs are expected during the year.
IMT SOLVED ASSIGNMENTS
Required: Prepare flexible budget for the period 20X1 – 20X2 at 85% level of capacity. Also ascertain profit and contribution
IMT-57: Financial Accounting-2014
IMT-57: Financial Accounting-2014
SECTION - A
Q1: "Accounting is carried out for various types of business ownership". Comment.
Q2: Explain characteristics of a liability.
Q3: Analyse the following transactions and events, and identify debit-credit giving reasons:
i. Mahesh started business with cash Rs. 10,00,000.
ii. Purchased plant & machinery worth Rs. 2,50,000.
iii. Opened a bank account in ICICI bank and deposited Rs. 50,000.
iv. Purchased goods worth Rs. 1,00,000 in cash from Mr. X.
v. Sold goods worth Rs. 80,000 to Mr. Y at 10% profit on cost.
Q4: AS-1 talks about three fundamental accounting standards, explain them.
Q5: How many types of journals are there explain them.
Section B
Q1: Explain advantages of day book.
Q2: On 31st March, 2014, Pass Book showed a balance of Rs. 25,000. Prepare a Bank Reconciliation Statement from the following particulars:
1. Cheques of Rs. 20,000 were deposited in Bank on 27th March, 2014, out of which cheques of Rs. 5,000 were cleared on 1st April, 2014. Rests are not cleared.
2. On 28th March, 2014, cheques were issued amounting to Rs. 15,000, out of which cheques of Rs. 3,000 were presented in March, Rs. 4,000 on 2nd April and rests were not presented.
3. Cheques of Rs. 10,000 were deposited in Bank on 28th march, 2014, out of which cheques of Rs. 4000 were cleared on 2nd April, 2014 and rest is dishonored.
4. Interest on investment collected by bank does not appear in the Cash Book Rs. 800.
5. A B/R of Rs. 9,000 previously discounted from the bank was dishonored on 30th March, 2014 but no intimation was received from the bank till 31st
6. Bank has debited Rs. 1,500 and credited Rs. 1,200 in our Account.
Q3: Explain meaning and purpose of trial balance
Q4: Prepare the Store Ledger Account on the basis of FIFO method:
mba solved assignments
Q5: What do you mean by dividend? Explain the dates which are relevant when accounting for dividends.
SECTION - C
Q1: Differentiate between operating revenue and other income.
Q2: Write a short note on cash and cash equivalents.
Q3: Briefly discuss the matters to be included in the Director’s report.
Q4: Cash is the lifeblood of business. How cash flow information helps users?
Q5: Explain revenue based, assets based and capital based profitability ratios.
CASE STUDY - 1
From the following information calculate:
a) Gross profit ratio
b) Inventory turnover ratio
c) Current ratio
d) Liquid ratio
e) Net profit ratio
f) Working capital turnover ratio
Sales Rs. 25,00,000; Cost of sales Rs. 19,20,000; Net profit Rs. 3,60,000; Average inventory Rs. 8,00,000; Other current assets Rs. 7,60,000; Fixed assets Rs. 14,40,000; Long term Debts Rs. 9,00,000; Current liabilities Rs. 6,00,000; Trade Creditors Rs. 2,00,000; Net profit before interest and tax Rs. 8,00,000.
CASE STUDY - 2
From the following information, prepare a cash flow statement of Crispin Ltd.
imt solved assignments
Additional Information:
a. Depreciation charged on fixed assets was Rs. 81,000.
b. An interim dividend of 15% was paid. Additional shares were issued on 31-03-14.
c. Preference shares were redeemed at a premium of 15%.
d. Fixed assets with a book value of Rs. 54,000 were sold at Rs. 33,750.
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