1 (a)
With an example, explain problem solving process.
6 M
1 (b)
Sketch and explain cash flow diagram for borrower's and lender's point of view.
6 M
1 (c)
A person is planning for his retired life. He has 10 more years of service. He would like to deposit 20% of his salary, which is ₹ 4,000/- in the first year and thereafter he wishes to deposit with an annual increase of ₹500/- for the next 9 years with interest rate of 15%. Find the total amount at the end of 10^{th} year of the above series.
8 M
2 (a)
List the conditions for the present worth comparison.
4 M
2 (b)
Investment proposals A and B have the net cash flow given below:
Compare the present worth of A and B at i=18% and which proposal should be selected.
Compare the present worth of A and B at i=18% and which proposal should be selected.
Proposal | End of Year | ||||
0 | 1 | 2 | 3 | 4 | |
A (₹) | -10,000 | 3,000 | 3,000 | 7,000 | 6,000 |
B (₹) | -10,000 | 6,000 | 6,000 | 3,000 | 3,000 |
8 M
2 (c)
Two motor bikes of brand 'X' and 'Y' are available on the following conditions:
i) Motor bike 'X' - Make a down payment of ₹ 5,000/- and then ₹ 6,000/- at the end of each year for 7 years.
ii) Motor bike 'Y' - Make a down payment of ₹ 15,000/- and no payment for the next 4 years. At the end of 5^{th}, 6^{th} and 7^{th} year. Payments of ₹ 12,000/- is made. Compare the future worth of Motorbike 'X' and 'Y' at an interest rate of 10%.
i) Motor bike 'X' - Make a down payment of ₹ 5,000/- and then ₹ 6,000/- at the end of each year for 7 years.
ii) Motor bike 'Y' - Make a down payment of ₹ 15,000/- and no payment for the next 4 years. At the end of 5^{th}, 6^{th} and 7^{th} year. Payments of ₹ 12,000/- is made. Compare the future worth of Motorbike 'X' and 'Y' at an interest rate of 10%.
8 M
3 (a)
Define the following: i) Ownership life ii) Economic life.
4 M
3 (b)
Two models of small machines perform the same function. Type 1 machine has a low initial cost of ₹ 9,500/- and relatively high operating costs of ₹ 1,900/- year more than those of Type 2 machine, and a short life of 4 years. The more expensive Type 2 machine costs ₹ 25,100/- and can be kept in service economically for 8 years. Which machine is preferred when the MARR is 8% using Equivalent Annual cost method?
8 M
3 (c)
A company invests in one of the two mutually exclusive alternatives. The life of both alternatives is estimated to be 5 years with the following cash flows:
Determine the best alternative based on the annual equivalent method by assuming i=25%.
Determine the best alternative based on the annual equivalent method by assuming i=25%.
Cash flows |
Alternative | |
A | B | |
Investment (₹) | -1.5 lakhs | -1.75 lakhs |
Annual return (₹) | 60,000 | 70,000 |
Salvage value (₹) | 15,000 | 35,00 |
8 M
4 (a)
Define MARR, IRR and ERR.
3 M
4 (b)
Define the term depreciation and what are the causes for it.
4 M
4 (c)
Net cash flows for the business proposal are given below. Calculate the rate of return for the new business.
Year | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flow (₹) | -10,000 | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 |
5 M
4 (d)
A CNC machine costs ₹ 30,00,000 is estimated to serve for 8 years after which its salvage value is ₹ 2,50,000. Calculate
i) Depreciation fund at the end of 5^{th} year by straight line method and declining balance method.
ii) Book value of the machine after 4^{th} and 6^{th} year by declining balance method.
i) Depreciation fund at the end of 5^{th} year by straight line method and declining balance method.
ii) Book value of the machine after 4^{th} and 6^{th} year by declining balance method.
8 M
5 (a)
List and briefly explain different elements of cost required for finding selling price of the product.
6 M
5 (b)
A certain prece of work is produced by a firm in batches of 100. The Direct material cost for the batch is ₹ 160 and Direct labour cost is ₹ 200. Factory on cost is 35% of the total material and labour cost. Overhead charges are 20% of the factory cost. Calculate the Prime cost and factory cost, if the management wants to make a profit of 10% of total cost, determine the selling price of each article.
6 M
5 (c)
A C.I. stepped cone pulley is shown in fig. Q5(c). Method cost = â‚¹ 20/kg. Calculate the material cost of Pulley by assuming density of C.I. = 7.209 mg/c.c.
All dimensions are in mm
All dimensions are in mm
8 M
6 (a)
What is Journal and ledger? Explain with a suitable example.
6 M
6 (b)
List the important differences between balance sheet and profit/loss account.
6 M
6 (c)
A company 'Z' has certain reserves and surplus as per the details given below as on 31^{st} March 2014. (Amounts are in ₹).
Prepare a balance sheet for the company Z as on 31^{st} March 2014.
Prepare a balance sheet for the company Z as on 31^{st} March 2014.
Dividend Payable | 72,000 | Debtors | 1,60,000 |
Bank balance | 10,000 | Bills Payable | 20,000 |
Equity shares | 2,00,000 | Plant & Equipment | 80,000 |
Provision for taxes | 40,000 | Bills receivable | 20,000 |
Stock | 77,000 | Creditors | 55,000 |
Preference shares | 1,35,000 | General reserve | 40,000 |
Land & Building | 2,00,000 | Cash in hand | 15,000 |
8 M
7 (a)
List and explain different types of ratios used for financial statement analysis.
10 M
7 (b)
A company ABC is presented a balance sheet as on 31^{st} Dec 2013 is given below.
Net Sales - ₹ 1,80,000; Net profit - ₹ 16,000; Gross profit - ₹ 40,000.
Calculate i) Current ratio ii) Operating ratio iii) Gross profit ratio iv) Proprietary ratio v) Debtor's turnover ratio.
Net Sales - ₹ 1,80,000; Net profit - ₹ 16,000; Gross profit - ₹ 40,000.
Calculate i) Current ratio ii) Operating ratio iii) Gross profit ratio iv) Proprietary ratio v) Debtor's turnover ratio.
Liabilities | Amount (?) | Assets | Amount (?) |
Creditors | 20,000 | Cash at bank | 15,380 |
Bills payable | 12,750 | Trade debtors | 11,260 |
Debentures | 1,00,000 | Stock in hand | 56,160 |
Reserves | 67,250 | Fixed assets | 2,17,200 |
Share capital | 1,00,000 | ||
Land & Building | 2,00,000 | Cash in hand | 15,000 |
10 M
8 (a)
List the important objectives of profit planning.
6 M
8 (b)
Explain different types of budgets.
10 M
8 (c)
Write a brief note on bench marking in manufacturing.
4 M
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