JAIPUR NATIONAL UNIVERSITY, JAIPUR
School of Distance Education & Learning
Internal Assignment No. 1
MBA F -107
Paper Code: MBA –FM/DFM
Paper Title: Working Capital Management
Last date of submission: Max. Marks: 15
Note: Question No. 1 is of short answer type and is compulsory for all the students. It carries 5 Marks. (80-100 Words)
Q. 1. Answer all the questions:
a. Differentiate between Gross Working Capital and Networking Capital.
b. Name the factors determining Working Capital.
c. On what factors trade credit depends?
d. Explain the meaning of Commercial Paper.
e. Discuss the factors determining the investment in inventory.
NOTE: Answer any two questions. Each question carries 5 Marks. (1*5=5 Marks) (500 Words).
Q.2 what do you understand by working capital? Explain theconcept and deteminants of Working
Capital.
Q.3 what is factoring? Discuss the types and benefits offactoring.
Q.4 what do you mean by Receivable Management? How willyou control the investment in
Receivables? Explain.
Q.5 Discuss the management problems involved in the planningand control of cash. Explain the
Importance of cash budgets main tool of cash planning.
Q.6 Write short notes on :
a. Public deposits.
b. Marketable Securities
c. ABC Analysis
JAIPUR NATIONAL UNIVERSITY, JAIPUR
School of Distance Education & Learning
Internal Assignment No. 2
MBA F -107
Paper Code: MBA –FM/DFM
Paper Title: Working Capital Management
Last date of submission: Max. Marks: 15
Note: Question No. 1 is of short answer type and is compulsory for all the students. It carries 5 Marks. (1*5=5 Marks) (50-100 Words)
Q. 1. Answer all the questions.
a. How would you estimate the recorder level?
b. What is the objective of management of receivables?
c. how credit analysis is done?
d. What are the functions of Cash Management?
e. Explain the motives for holding cash.
Note: Answer any two questions. Each question carries 5 marks (Word limits 500)
Q.2 ABC Ltd. manufactures a special product ‘X’. The following particulars collected for the year 2011:
a. Monthly demands of ‘X’ 1000 units.
b. Cost of placing an order Rs. 100.
c. Annual carrying cost per unit Rs. 15.
d. Normal usages 50 units per week; minimum usage 25units per week and maximum usage 75 Units per week.
e. Reorder period 4 to 6 weeks.
Compute:
i. Economic Order Quantity.
ii. Reorder level.
iii. Minimum level.
iv. Maximum level.
Q.3 From the following information extracted from the books of a manufacturing company, compute the operating cycle in days and required working capital :
Period covered 365 days
Average period allowed by suppliers 16 days Rs.
Average debtors outstanding 24000
Raw Material Consumption 255500
Total Production Cost 474500
Total cost of sales 511000
Sales for the year (all credit) 730000
Value of average stock maintained:
Work in progress 18200
Finished Goods 14000
Raw Material 21000
Expected cash balance 20000