ROLL No..

NATIONAL COUNCIL FOR HOTEL MANAGEMENT

AND CATERING TECHNOLOGY, NOIDA
TERM END EXAMINATIONS-2010
YEARICOURSE 3rd year of 3-year B.Sc.
SUBJECT Financial Management
TIME ALLOWED 03 Hours MAX. MARKS: 100

(Marks alloted to 2ach question are given in brackets)

Q1. Prepare a Funds Flow Statement for the year 2009 from the following Balance
Sheets:

BALANCE SHEETS AS ON 31ST MARCH 2009

Liabilities 20082009L Assets 20082009

Share Capital 5,00,000 6,00,000 Fixed Assets 5,00,000 6.00,000
Sundry Creditors 10,000 12,000 Cash in hand 17,000 16,000
Outstanding 8,000 5,000 Sundry 8,000 11,000
expensesS Debtors
Bills Payable 5,000 6,000 Investment 10,000 15,000
Provision for tax 12,000 19,000
5,35,000 6,42,000 5,35,0006,42,000
(10)
Q2. Prepare a Cash Flow Statement for the year 2009 from the following Balance
0.2.
Sheets

Liabilities 2008 2009 Assets 2008 2009

Total current 10,000 20,000 Totalfixed 60,000 85,000
liabilities assets
Equity shares 50,000 80,000 Sundry debtors 15,000 18,000
Bank loan 10,000 15,000 Marketable 10,000 20,000
securities
Profit& Loss 15,000 18,000 Cash in hand 5,000 12,000
account
Proposed dividend 5,000 2,000
90,000 1,35,000 90,000 1,35,000
(10)

BHM/03
 SUBUECT CODE BHM307
SUBJECT CoDE BHM307 2/3
Q3 An industrialist is offered two options for investment with the following cash ows. Q6 Fromthe following information,prepare acomparative income statemert
Year 2008 Year 2009
His decision criterion is a payback period of three years
Sales 1,00,000 1.50
CO0
Cost ofgoods sold 50,000 60 000
Investment required Income Tax 16,000 240
Investment Investme 30,000
A Indirect expenses 10,0C0
(10)
Annual cash flows 8,000
Year
eT.Net Sales 3,00,000
4,000 2,500 Cost of goods sold 2,58,000
3,000 2.500 Net profit after tax 10,000
2.000 2,500 6,000
1.000 2,500
Creditors
Bills payable 10,000
Outstanding expenses 1,000
Advise the industnalist by payback peniod method Tax payable 13,000
(10) Cash 20,000
Stock 30,000.
a4 ABCo. Ltd. Is considering to purchase a machine. Two machines are avalable X Sundry debtors 20,000
and Y costing Rs.1,80,000/
From the above infomation, calculate ratios:
Gross Profit,Ratio Net Proit Ratio
(b) c) Quick Ratio
a)
X machine Y machine Discount (d) Curent Ratio (e) Inventory Tumover Ratio
Cash iniow cash into factor 8% (5x2-10)
30,000 60 000 926 OR
1,00,000 357 What do you understand by ratio analysis? Explain tumover ratios.
50,000
60,000 65.000 .794 (10)
65,000 45 000| 735
What do you understand by capital structure? Mention the factors affecting
40,000 651 Q8.
30,000 630 capital structure.
16,000 OR
Define working capital. Discuss what is under trading?
of (10)
Evauate the two atematives according to Net Present Value method. (Cost
Capital@6%) (10) a.9. Write the difference between funds flow and cash flow analysis.
OR
OR What do you understand by financial analysis? Wnte limitations of financial
Wrie shor noles on:
Payback penod method (b) Net present value method analysis.
(a) (10)
(C Proftabiiny index method (d) Intemal rate of retum method Q10. Write short notes on any two of the following:
(4x2 % =10)
(a Du pont chart (b) Under capitalization
the causes of (c) Debt-Equity Rato() Over trading
Wh do you mean by financial planning. Explain
05 (2x5-10)
overcapitalízaton, (10)
BHM03
BHMOS