Kmgt432

 Kmgt432 Composition

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ALLAMA IQBAL OPEN UNIVERSITY OR COLLEGE ISLAMABAD

LEVEL Paper Period Allowed BE AWARE Q. 1 Give the details that follow, prepare a cash pay up the Sitara Group Industrial sectors for the first six months of 19x2. a. All prices and costs stay constant. w. Sales will be 75% for credit and 25% to get cash. c. With respect to credit rating sales. 60 per cent are collected in the month after the sales, 30% inside the second month, and 10% in the third. Bad-debt loss are insignificant. d. Product sales actual and estimated are October 19X1 $300, 000 November 19X1 350, 500 December 19X1 400, 500 January 19X2 150, 500 February 19X2 200, 500 e. farrenheit. March 19X2 April 19X2 May 19X2 June 19X2 July 19X2 $200, 000 300, 500 250, 500 200, 1000 300, 1000 MBA Monetary Management CLOSED CIRCUIT. 562/5535 several Hrs Semester Spring 2006 Maximum Marks 100 Go Marks 45

ATTEMPT FIVE QUESTIONS. ALL CARRY EQUIVALENT MARKS

Obligations for buys of products are 80 percent of the next month's anticipated sales. Income and salaries are. January March May possibly $30, 1000 50, 1000 40, 000 February April June $40, 000 50, 000 thirty five, 000

g h. we. j. e.

Rent is usually $2, 500 a month. Interest of $7, 500 is due on the last day of each and every calendar 1 / 4, and no quarterly cash returns are designed. A tax prepayment of $$50, 500 for 19X2 incomes is due in April. A capital investment of $30, 000 is planned in Summer to be covered then. The organization has a funds balance of $100, 1000 at December 31, 19X1, which is the minimum ideal level pertaining to cash. Money can be borrowed in multiples of $5, 000. (Ignore interest in such borrowings. )

Suggested Solution By simply Prof. N. R. Tariq For any problem please speak to at [email protected] com, 0333-4233770, 0321-4401660

Webpage 2 of 29 Q. 1 Solution: Sitara Industries Cash Finances – January to Summer 19 times 2 Oct Sales Credit Sales 300, 000 240, 000

Nov

Dec

Jan

Feb

200, 000 one hundred and fifty, 000

Mar

200, 500 150, 000

Apr

May well

June

two hundred, 000 150, 000

350, 000 500, 000 150, 000 262, 500 300, 000 112, 500

three hundred, 000 two hundred fifty, 000 240, 000 187, 500

Collections

60% thirty percent 10% Money Total Funds collection one hundred thirty five, 000 157, 000 one hundred and eighty, 000 67, 500 80, 750 twenty-two, 500 90, 000 37, 500 318, 750 67, 500 90, 000 21, 250 50, 000 233, 750 85, 000 thirty-three, 750 35, 000 60, 000 203, 750 80, 000 135, 000 112, 500 forty five, 000 forty-five, 000 67, 500 10, 250 15, 000 12-15, 000 75, 000 sixty two, 500 55, 000 221, 250 257, 500 245, 000

75, 000

87, 500

Obligations Purchases Hire Wages Duty payments Capital Investment Curiosity Total Obligations Net Cash flow Beginning money Ending money Bank Funding

160, 500 2, 500 30, 500

160, 500 240, 500 2, 000 2, 1000 40, 500 50, 500

192, 1000 126, 750 100, 500 226, 750 0

202, 000

six, 500 299, 500

200, 000 160, 000 240, 000 2, 000 a couple of, 000 two, 000 60, 000 45, 000 thirty five, 000 60, 000 40, 000 7, 500 302, 000 202, 000 314, 500 (80, 750) fifty-five, 500 (69, 500) 162, 750 82, 000 137, 500 82, 000 137, 500 sixty-eight, 000 twenty, 000 0 35, 1000

31, 750 (95, 750) 226, 750 258, 500 258, 500 162, 750 0 0

Q. two The Kari Kid Firm manufactures just product: cedar planks. The single natural material used to make planks is definitely the dint. For each plank manufactured 12 dints are required. Imagine the company manufactures 150, 500 planks per year, that with regard to planks in perfectly steady throughout the year, that it costs one hundred dollar each time dints are purchased and that having costs happen to be $8 every dint annually. Required: (a) (b) (c)

Determine the economic order quantity of dints What are total inventory costs for Kari Kid? How many times annually would inventory be purchased?

Suggested Option By Prof. F. 3rd there’s r. Tariq For almost any query make sure you contact in [email protected] com, 0333-4233770, 0321-4401660

Page a few of twenty nine Q. a couple of Answer: (a) EOQ = в€љ 2 (O) (S) C в€љ 2 (200) (1, 800, 000) 8 9487 dints

=

= (b) Total Annual Inventory Cost = =

C (Q/2) & O (S/Q)

$8 (9487) + $200 (1, 800, 000) a couple of 9487 = $75, 895 (C) Volume of orders annually = = Q. 3 The Dud Company continues to be factoring the accounts receivable for the past five years. The factor charges a fee of 2% and can lend approximately 80percent with the volume of receivables purchased for an additional 1 ) 5 percent each month. The firm...