Soft Copy: Yes
Downloadable File: Yes
MS-41 Working Capital Management Question and Answer
Course: Master of Business Administration
Fully Solved: Yes
MS-41 Solved Assignment 2022 – Working Capital Management
Q1. Discuss the Role of Central Bank in designing and implementing monetary and credit policy. What are the important policy measures announced as a part of the latest credit policy.
Q2. You are to prepare Cash Flow Statement from the Balance Sheets of alpha Ltd.
Buildings 8,00,000 10,00,000 Share Capital 17,00,000 18,35,000
Plant & Machinery 2,50,000 3,70,000 Reserves 40,000 83,700
Fixtures & Fittings 5,000 6,000 Profit & Loss
Cash 2,000 2,200 Provision for Dividends 70,000 50,000
Debtors 1,00,000 45,000 Creditors 1,00,000 95,000
8,000 9,000 Bank Overdraft 8,000 18,000
Stock 4,00,000 3,43,700 Bills Payable 14,000 13,000
Prepaid Expenses 3,000 3,100 Loan on Mortgage 10,000 70,000
Investments 1,64,000 1,70,000
Goodwill 3,00,000 3,43,700
20,42,000 22,94,700 20,42,000 22,94,700
(i) Depreciation is charged on building at 3 percent of cost of Rs. 9,00,000 on plant; machinery
at 8 percent of cost Rs. 4,00,000 and fixtures & fittings at 5 percent of cost Rs. 8,000.
(ii) Interest received Rs. 3,000 on investments was used in writing down the book value of
(iii) Dividends declared for 2020 was paid and interim dividend of Rs. 20,000 was paid out of
Profit & Loss Appropriation Account.
Q3. What is a Commercial Paper (CP)? Discuss the terms and conditions laid down by companies for issuing CP. Describe the procedure followed in India for issuing commercial paper.
Q4. If you are a manager of an MNC, under what circumstances would you consider using Euro-Currency markets? What advantages or disadvantages these markets would offer compared to borrowing from domestic markets?
Q5. Taking a suitable example explain how maximum permissible bank finance is determined under the three methods of lending.