Goodwill tuition centre for accountancy and income tax , Ernakulam Ph: 9567902805

Goodwill tuition centre for accountancy and income tax , Ernakulam Ph: 9567902805
 fredi

Goodwill tuition centre for accountancy and income tax , Ernakulam Ph: 9567902805
 SUBJECT CODE: BHM307 EXAM DATE: 18.11.2019

ROLL No………………………………….

NATIONAL COUNCIL FOR HOTEL MANAGEMENT AND CATERING TECHNOLOGY, NOIDA

ACADEMIC YEAR – 2019-2020

COURSE : 5th Semester of 3-year B.Sc. in H&HA

SUBJECT : Financial Management
TIME ALLOWED : 03 Hours MAX. MARKS: 100
__________________________________________________________________________________________________________________
(Marks allotted to each question are given in brackets)
__________________________________________________________________________________________________________________
Q.1. What is capital structure? Explain the importance of capital structure.
OR
What is capital budgeting? How is it important in decision making?
(10)

Q.2. What is financial management? Explain the functions of financial management.

OR
Explain financial planning and its importance.
(10)

Q.3. What is financial analysis? Explain the different types of financial analysis.
OR
What is financial statement? Explain the different types of financial statements.
(10)

Q.4. What do you understand by working capital? Explain the factors affecting the working capital.
OR
What is fund flow statement? Explain the objectives of fund flow statement.
(10)

Q.5. Write short notes on any two:

(a) Value maximization (b) Financial plan (c) Du Pont control chart
(2x5=10)

Q.6. Distinguish between the following (any two):

(a) Reserve and revenue
(b) Over-trading and under-trading
(c) Fund flow statement and cash flow statement
(2x5=10)

Q.7. Prepare a Statement of Changes in working capital from the following balance sheet as on 31st December: ferdi

Liabilities 2014 (Rs.) 2015 (Rs.) Assets 2014 (Rs.) 2015 (Rs.)
Equity share capital 15,00,000/- 15,00,000/- Cash in hand 5,000/- 10,000/-
Preference share capital 2,00,000/- - Cash at bank 40,000/- 50,000/-
Debentures 1,00,000/- 5,00,000/- Bills receivable 30,000/- 80,000/-
Long term loan 1,00,000/- 3,00,000/- Debtors 10,000/- 30,000/-
Short term loan 30,000/- 50,000/- Land & building 12,00,000/- 15,00,000/-
Bills payable 15,000/- 10,000/- Kitchen equipment 4,50,000/- 4,80,000/-
Outstanding expenses 10,000/- 15,000/- Cutlery 2,20,000/- 2,25,000/-
19,55,000/- 23,75,000/- 19,55,000/- 23,75,000/-

(10)
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FM/NOV/ODDSEMESTER/19-20/05/NC Page 1 of 2
SUBJECT CODE: BHM307 EXAM DATE: 18.11.2019

Q.8. Balance sheet of M/s. Maruti Ltd. as on 31.12.2018 was as follows: ferdi

Liabilities Amount (in Rs.) Assets Amount (in Rs.)

Capital reserve 60,000/- Cash in hand 10,000/-
Equity share capital 50,000/- Short term investments 16,000/-
Profit & loss account 52,000/- Stock 20,000/-
Creditors 26,000/- Debtors 24,000/-
Bank overdraft 4,000/- Furniture & fixtures 10,000/-
Taxation: Current 4,000/- Plant and machinery 50,000/-
Future 4,000/- Land and buildings 70,000/-
2,00,000/- 2,00,000/-

From the above balance sheet, calculate:

(i) Current ratio (ii) Quick ratio (iii) Debt equity ratio (iv) Proprietary ratio
(10)
Q.9. Balance sheet of XYZ Ltd at the end of 2016 and 2017 are as follows:

Liabilities 31st March 2016 (in Rs.) 31st March 2017 (in Rs.)
Accounts payable 15,000/- 20,000/-
Notes payable 25,000/- 10,000/-
Other current liabilities 10,000/- 15,000/-
6% bonds - 20,000/-
Profit and loss account (retained earnings) 80,000/- 1,10,000/-
Mortgage - 10,000/-
Shares 50,000/- 50,000/-
TOTAL: 1,80,000/- 2,35,000/-
Assets 31st March 2016 (in Rs.) 31st March 2017 (in Rs.)
Cash 10,000/- 5,000/-
Marketable security 10,000/- -
Inventory 70,000/- 1,05,000/-
Receivables 30,000/- 40,000/-
Fixed assets 1,00,000/- 1,40,000/-
Accumulated depreciation (-) 40,000/- (-) 55,000/-
TOTAL: 1,80,000/- 2,35,000/-

You are required to prepare a statement of changes in working capital and fund flow statement.
(10)
Q.10. Rank the following projects in the order of their desirability according to the Net Present Value Method:
fredi
Project abraham
Year 1 - ` Year 2 - ` Year 3 - ` Year 4 - ` Year 5 - `
A 5000 10000 10000 3000 2000
B 20000 10000 5000 3000 2000

Initial investment:
Project A - `20000
Project B - `30000
Discount rate 10%
Present value `1/- @10% (discount factor) using present value tables:

Year1 Year 2 Year 3 Year 4 Year 5

.909 .826 .751 .683 .621

(10)

***********
Ans: since NPV of project A is greater than project B, project A will be selected

FM/NOV/ODD19 -20 - Page 2 of 2

 SUBJECT CODE: BHM307 EXAM DATE: 22.11.2014

ROLL No…………….

NATIONAL COUNCIL FOR HOTEL MANAGEMENT

AND CATERING TECHNOLOGY, NOIDA
ACADEMIC YEAR – 2014-2015
COURSE : 5th Semester of 3-year B.Sc. in H&HA
SUBJECT : Financial Management
TIME ALLOWED : 03 Hours MAX. MARKS: 100
______________________________________________________________________
(Marks allotted to each question are given in brackets)
______________________________________________________________________
Q.1. A Balance Sheet of a company is given below: ferdi

Liabilities Amount in ` Assets Amount in `

Equity Capital 5,00,000/- Cash in hand 50,000/-
Reserve & Surplus 50,000/- Fixed Assets 3,00,000/-
Loan 1,00,000/- Stock 65,000/-
Creditors 40,000/- Debtors 50,000/-
P & L Account 50,000/- Goodwill 50,000/-
Provision for Taxation 25,000/- Investment 2,50,000/-
TOTAL 7,65,000/- TOTAL 7,65,000/-

Note: Sales for the year was `2,50,000/-

Calculate:
(a) Current ratio CA / CL

(b) Fixed assets to current assets ratio FA / CA

(c) Debt equity ratio DEBT / EQUITY
(d) Liquidity ratio LA / CL
(e) Fixed assets turnover ratio SALES / FA
(5x2=10)

Q.2. What is Working Capital? Discuss the factors which determine working capital
needs of a firm.
OR
Discuss the features of Financial Management.
(10)

Q.3. What do you understand by Financial Analysis and what are its objectives?
OR
Write the difference between Fund Flow Statement and Cash Flow Statement.
(10)

FM/NOV/ODD/14-15/02 Page 1 of 3

Goodwill tuition centre for accountancy and income tax , Ernakulam Ph: 9567902805
 SUBJECT CODE: BHM307 EXAM DATE: 22.11.2014

Q.4. Define the following terms in not more than five lines each (any five):
(a) Net Profit Ratio (b) Cash Budget
(c) Trend Analysis (d) Stock Turnover
(e) Pay-back period method (f) Working Capital
(5x2=10)

Q.5. Prepare a Funds Flow Statement for the year 2013 from the following Balance ferdi
Sheets:
Balance Sheets as on 31st March 2013 decrease = 11000

Liabilities 2012 2013 Assets 2012 2013

Sundry Creditors 12,000/- 14,000/- Fixed Assets 5,50,000/- 6,50,000/-
Share Capital 5,50,000/- 6,50,000/- Investment 12,000/- 20,000/-
Bills Payable 10,000/- 10,000/- Cash in Hand 17,000/- 16,000/-
Provision for Tax 12,000/- 19,000/- Sundry Debtors 15,000/- 14,000/-
Outstanding Expenses 10,000/- 7,000/-
TOTAL 5,94,000/- 7,00,000/- TOTAL 5,94,000/- 7,00,000/-

(10)
Q.6. Write short notes on any two:
(a) DU Pont Control Chart
(b) Common size income statement
(c) Financial Planning
(2x5=10)

Q.7. Differentiate between the following (any two):

(a) Over Trading and Under Trading.
(b) Under Capitalisation and Over Capitalisation.
(c) Profit Maximization and Wealth Maximization
(2x5=10)

Q.8. Prepare a Statement of changes in Working Capital from the following Balance
Sheets of ABC Ltd.

Liabilities 2010 2011 Assets 2010 2011

Equity Capital 5,00,000/- 5,00,000/- Fixed Assets 6,00,000/- 7,00,000/-
Debentures 3,70,000/- 4,50,000/- Investments 2,00,000/- 1,00,000/-
Tax Payable 77,000/- 43,000/- Work in progress 80,000/- 90,000/-
Accounts Payable 96,000/- 1,92,000/- Stock 1,50,000/- 2,25,000/-
Interest Payable 37,000/- 45,000/- Bills Receivable 70,000/- 1,40,000/-
Dividends Payable 50,000/- 35,000/- Cash 30,000/- 10,000/-
TOTAL 11,30,000/- 12,65,000/- TOTAL 11,30,000/- 12,65,000/-

(10)
FM/NOV/ODD/14-15/02 Page 2 of 3

Goodwill tuition centre for accountancy and income tax , Ernakulam Ph: 9567902805
 SUBJECT CODE: BHM307 EXAM DATE: 22.11.2014

Q.9. XYZ Ltd. is considering to purchase a machine. Two machines are available A
and B costing `2,50,000/-.
1/ 1.08 = .925 / 1.08 = .856 / 1.08 = .794

year A machine B machine Discount factor 8%

cash inflow cash inflow
1 30,000 60,000 .926
2 50,000 1,00,000 .857
3 60,000 65,000 .794
4 65,000 45,000 .735
5 40,000 - .679
6 30,000 - .630
7 16,000 - .582

Evaluate the two alternatives according to Net Present Value method (Cost of
Capital @ 8%).
OR
State the importance of financial statement analysis. Explain any one technique
of financial statement analysis.
(10)

Q.10. What do you mean by Financial Planning? Explain the causes of Under-
capitalisation.
(10)
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********
 SUBJECT CODE: BHM307 EXAM DATE: 21.11.2015

ROLL No…………….

NATIONAL COUNCIL FOR HOTEL MANAGEMENT

AND CATERING TECHNOLOGY, NOIDA
ACADEMIC YEAR – 2015-2016
COURSE : 5th Semester of 3-year B.Sc. in H&HA
SUBJECT : Financial Management
TIME ALLOWED : 03 Hours MAX. MARKS: 100
_______________________________________________________________________
(Marks allotted to each question are given in brackets)
_______________________________________________________________________
Q.1. From the following Balance Sheet of M/s. XYZ Co. Ltd. for the period 31st March
2013 and 31st March 2014, you are required to prepare:
ferdi
(i) Statement of changes in the working capital;
(ii) Funds flow statement

Liabilities 31.03.2013 31.03.2014 Assets 31.03.2013 31.03.2014

Rs. Rs. Rs. Rs.
Share capital 4,00,000/- 5,00,000/- Land & Building 1,50,000/- 1,60,000/-
Creditors 1,00,000/- 65,000/- Furniture 40,000/- 45,000/-
Profit & Loss A/c 40,000/- 60,000/- Stock 80,000/- 1,10,000/-
Debtors 70,000/- 60,000/-
Cash/Bank 2,00,000/- 2,50,000/-
5,40,000/- 6,25,000/- 5,40,000/- 6,25,000/-

(10)
Q.2. What are the different sources of raising finance for a large organisation?
OR
What are the different financial statements which are usually prepared by
business organization?
(10)

Q.3. What do you understand by capital budgeting? What is its practical utility for a
large hotel?
OR
“Return on investments is considered to be the master ratio which reflects the
overall performance of a company‟. Explain.
(10)
Q.4. Define financial management. What are the main objectives of financial
management? Explain.
(10)

FM/NOV/ODD/15-16/04 Page 1 of 4

Goodwill tuition centre for accountancy and income tax , Ernakulam Ph: 9567902805
 SUBJECT CODE: BHM307 EXAM DATE: 21.11.2015

Q.5. “Ratio analysis is a tool to examine the health of a business with a view to make
financial results more intelligible”. Explain.
(10)
OR
Write short notes on any two:
(a) Over-capitalisation
(b) Net present value method
(c) Balance sheet (liquidity format)
(d) Distinguish between funds flow and cash flow
(2x5=10)

Q.6. From the following data, calculate the „Net Present Value‟ of two projects viz. X&Y
and suggest which of the two projects should be accepted assuming a discount ferdi
abraham
rate of 10%:

Sl. Particulars Project X (Rs.) Project Y (Rs.)

No.
01 Initial Investment 30,000/- 25,000/-
02 Estimated Life 5 years 5 years
03 Scrap Value 1,000/- 2,000/-

The profits before depreciation and after taxes (cash flows) are as follows:
Project Year 1 Year 2 Year 3 Year 4 Year 5
X 10,000/- 15,000/- 10,000/- 15,000/- 10,000/-
Y 10,000/- 15,000/- 15,000/- 20,000/- 15,000/-

Present value at 10% of Re.1/- is as under:

Year 1 2 3 4 5
Present value at 0.909 0.826 0.751 0.683 0.621
10% Re.1/-

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 SUBJECT CODE: BHM307 EXAM DATE: 21.11.2015

Q.7. From the Balance Sheets of M/s. XYZ Hotel, you are required to prepare cash
flow statement:

Liabilities As on As on Assets As on As on
31.03.2014 31.03.2015 31.03.2014 31.03.2015
Rs. Rs. Rs. Rs.
Share capital 50,000/- 70,000/- Cash 10,000/- 5,000/-
Debentures 30,000/- 20,000/- Debtors 15,000/- 20,000/-
Sundry Creditors 15,000/- 20,000/- Stock 50,000/- 40,000/-
Bills Payable 5,000/- 10,000/- Building 20,000/- 35,000/-
Profit & Loss A/c 20,000/- 25,000/- Furniture 15,000/- 35,000/-
Goodwill 10,000/- 10,000/-
1,20,000/- 1,45,000/- 1,20,000/- 1,45,000/-

OR
Write short notes (any two):
(a) Explain any two financial statements.
(b) Explain objective of profit maximization.
(c) Deferred Revenue Expenditure (with examples)
(2x5=10)

Q.8. BALANCE SHEET OF M/S. XYZ CO. LTD. AS ON 31.03.2015 fredi

Liabilities Amount (Rs) Assets Amount (Rs.)

Equity Share Capital 3,00,000/- Goodwill 70,000/-

10% Debenture 2,00,000/- Machinery 2,50,000/-
Reserves & Surplus 50,000/- Stock 1,50,000/-
Bills Payable 20,000/- Prepaid Expenses 25,000/-
Creditors 1,30,000/- Marketable Securities 1,25,000/-
Outstanding Expenses 15,000/- Debtors 30,000/-
Bank Overdraft 50,000/- Bills Receivable 25,000/-
Provision for taxes 10,000/- Cash in Hand 30,000/-
Cash at Bank 70,000/-
TOTAL: 7,75,000/- 7,75,000/-

Calculate:
(a) Current ratio (b)
Acid test ratio
(c) Debt equity ratio (d)
fixed assets to net worth ratio
OR
Define working capital. What factors would you take into account in estimating the
working capital needs of a large organisation?
(10)

FM/NOV/ODD/15-16/04 Page 3 of 4
Goodwill tuition centre for accountancy and income tax , Ernakulam Ph: 9567902805
 SUBJECT CODE: BHM307 EXAM DATE: 21.11.2015
ferdi
Q.9. The Income statement of a concern are given below for the year ending
31.03.2013 and 31.03.2014. You are required to prepare comparative income
statement:

Particulars 31.03.2013 31.03.2014

Amount in Rs. Amount in Rs.
Net Sales 1,50,000/- 2,50,000/-
Cost of goods sold 50,000/- 75,000/-
Operating Expenses: gross profit = 1,00,000
General & Administrative expenses 20,000/- 30,000/-
Advertisement expenses 30,000/- 40,000/-
Non-operating expenses:
Interest paid 10,000/- 25,000/-
Income tax 20,000/- 40,000/-
net profit = 20,000
(10)
Q.10. State True or False:

(a) Ratio analysis helps in decision making process.

(b) Debt equity ratio is to measure outsiders funds to shareholders funds.
(c) Working capital = current assets minus current liabilities.
(d) Non-fund items are added back to profits & loss account in order to know
funds from operation.
(e) Net present value method recognizes the time value of money.
(f) Pay back method is not a sample method to calculate.
(g) Depreciation is calculated on fixed assets as well as on current assets.
(h) Equity share holders and preference shareholders share profit equally.
(i) Gross profit ratio = Gross profit x100
Net profit
(j) Current ratio is = Current liabilitiesx100
Current assets
(10x1=10)
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********
 SUBJECT CODE: BHM307 EXAM DATE: 21.11.2016

ROLL No…………….

NATIONAL COUNCIL FOR HOTEL MANAGEMENT

AND CATERING TECHNOLOGY, NOIDA
ACADEMIC YEAR – 2016-2017
COURSE : 5th Semester of 3-year B.Sc. in H&HA
SUBJECT : Financial Management
TIME ALLOWED : 03 Hours MAX. MARKS: 100
_______________________________________________________________________
(Marks allotted to each question are given in brackets)
_______________________________________________________________________
Q.1. Explain the objectives and functions of financial management.
OR
How is the finance function organised? What are the functions that finance
department performs in a large organisation?
(10)

Q.2. Define capital structure. Explain the principles, while forming the capital structure
of the organisation.
OR
Define working capital. What factors would you take into consideration in
estimating the working capital needs of a budget hotel?
(10)

Q.3. Explain ratio analysis types with the help of a chart and its importance.
OR
Write short notes on:
(a) Over capitalisation
(b) Indifference point
(c) Comparative and common size income statements
(10)

Q.4. Write short notes on:

(i) Payback period
(ii) Cash flow statements
(iii) Average rate of return
(iv) Profit maximisation
(4x2 ½ =10)

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FM/NOV/ODD/16-17/02/NC Page 1 of 4
 SUBJECT CODE: BHM307 EXAM DATE: 21.11.2016

Q.5. Balance Sheet of a company as on 31.12.2010 is as follows:

Liabilities 2009 2010 Assets 2009 2010

Share capital 2,00,000/- 2,50,000/- Fixed assets 3,50,000/- 4,75,000/-

Retained earnings 1,60,000/- 3,00,000/- Stock 1,00,000/- 95,000/-
Premium on shares - 5,000/- Bills receivable 43,000/- 50,000/-
Accumulated depreciation 80,000/- 60,000/- Pre-paid expenses 4,000/- 5,000/-
Debentures 60,000/- - Cash balance 15,800/- 10,200/-
Accounts payable 37,800/- 40,200/- Commission on 25,000/- 20,000/-
shares
TOTAL: 5,37,000/- 6,55,200/- 5,37,000/- 6,55,200/-

Additional information:

(i) Net income for the year Rs.1,40,000/-

(ii) Fixed assets purchases was made during the year at a cost of
Rs.1,65,000/- and fully depreciated machinery costing Rs.40,000/-
(iii) Depreciation for the year Rs.20,000/-
(iv) Income tax paid was Rs.40,000/-

You are required to prepare:

(a) A statement of schedule of changes in working capital
(b) Sources and application of funds
(15)

Q.6. A project cost Rs.25,000/-. The net profits before depreciation and tax, and tax ferdi
rate 20% for the five years. Following are the expected cash flows to be: abraham

Year Project
1 5,000/-
2 6,000/-
3 7,000/-
4 8,000/-
5 10,000/-

You are required to calculate payback period.

(10)

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FM/NOV/ODD/16-17/02/NC Page 2 of 4
SUBJECT CODE: BHM307 EXAM DATE: 21.11.2016

Q.7. From the following information, prepare comparative balance sheet and give your
interpretations:

Liabilities 2000 2001 Assets 2000 2001

Amount Amount Amount Amount
in Rs. in Rs. in Rs. in Rs.
Share Capital 5,00,000/- 8,00,000/- Land & Building 4,30,000/- 3,70,000/-
Reserves and surplus 4,30,000/- 2,22,000/- Plant 3,70,000/- 5,00,000/-
Debentures 1,00,000/- 2,00,000/- Furniture 25,000/- 30,000/-
Loan 2,50,000/- 3,00,000/- Other fixed assets 20,000/- 25,000/-
Bills payable 80,000/- 45,000/- Cash and Bank 25,000/- 90,000/-
Sundry creditors 1,00,000/- 1,10,000/- Bills receivable 1,45,000/- 80,000/-
Current liabilities 6,000/- 20,000/- Sundry debtors 2,50,000/- 3,50,000/-
Stock 2,00,000/- 2,50,000/-
Pre-paid expenses 1,000/- 2,000/-

TOTAL: 14,66,000/- 16,97,000/- TOTAL: 14,66,000/- 16,97,000/-

(10)

Q.8. A company has to choose one of the following two mutually exclusive projects
A&B. Project A requires Rs.20,000/- and Project B requires Rs.15,000/- as initial
investment. The firms cost of capital is 10%. Suggest which project should be
accepted under NPV method. Following are the net cash flows:

Q.8. A company has to choose one of following two mutually exclusive projects A & B. Project A
requires Rs.20,000/- and Project B requires Rs.15,000/- as initial investment. The firms cost of
capital is 10%. Suggest which project should be accepted under NPV method, the given are
net cash flows as follows:
Year 1 2 3 4 5
Project A 4200 4800 7000 8000 4000
Project B 4200 4500 4000 5000 4000

Calculate: net present value

Present value Rs.1/- @ 10% (discount factor) using present value tables
Year 1 Year 2 Year 3 Year 4 Year 5
.909 .826 .751 .683 .621

(10)

Q.9. Tyre manufacturing company has drawn up the following profit and loss account
for the year ended:

Calculate:
(a) Gross Profit Ratio
(b) Net Profit Ratio

FM/NOV/ODD/16-17/02/NC Page 3 of 4
 fredi

SUBJECT CODE: BHM307 EXAM DATE: 21.11.2016

3.95 grewal
formulae

(c) Operating Ratio cost of goods sold + op. expenses / net sales x 100

(d) Operating Profit Ratio 100 - op. ratio

Particulars Rs. Particulars Rs.

To opening stock 26,000/- By Sales 1,60,000/-
To purchases 80,000/- By Closing Stock 38,000/-
To wages 24,000/-
To manufacturing expenses 16,000/-
To gross profit c/d 52,000/-
1,98,000/- 1,98,000/-
To selling & distribution expenses 4,000/- By gross profit b/d 52,000/-
To administrative expenses 22,800/- By commission received 4,800/-
To value of furniture lost by fire 800/-
To general expenses 1,200/-
To net profit c/d 28,000/-
56,800/- 56,800/-

(10)
Q.10. Fill in the blanks:
(a) Expenditure incurred on research is an example of
_____________________. (Deferred revenue expenditure/partly capital
expenditure.
(b) Capital structure means the pattern of __________ in the firm (capital
employed/dividend).
(c) Capital budgeting is related to __________ (sales/capital expenditure).
(d) Quick assets = current assets (minus) __________ (debtors/stock).
(e) Depreciation means reduction in the value of __________ due to usage
and efflux of time (current assets/fixed assets).
(5x1=5)

*******
Goodwill tuition centre for accountancy and income tax , Ernakulam Ph: 9567902805
SUBJECT CODE: BHM307 EXAM DATE: 19.11.2018

ROLL No………………………………….

NATIONAL COUNCIL FOR HOTEL MANAGEMENT

AND CATERING TECHNOLOGY, NOIDA
ACADEMIC YEAR – 2018-2019
COURSE : 5th Semester of 3-year B.Sc. in H&HA
SUBJECT : Financial Management
TIME ALLOWED : 03 Hours MAX. MARKS: 100
______________________________________________________________________
(Marks allotted to each question are given in brackets)
______________________________________________________________________
Q.1. Prepare a funds flow statement of XYZ hotel Ltd. for the year 2016 from the ferdi
following balance sheet:
XYZ Ltd.
Balance Sheet

Liabilities 2015 (Rs.) 2016 (Rs.) Assets 2015 (Rs.) 2016 (Rs.)
Share capital 5,00,000/- 6,00,000/- Fixed assets 5,00,000/- 6,00,000/-
Secured loan 12,000/- 19,000/- Investments (short term) 10,000/- 15,000/-
Creditors 10,000/- 12,000/- Debtors 8,000/- 11,000/-
Bills payable 8,000/- 5,000/- Cash in hand 17,000/- 16,000/-
P/L account 5,000/- 6,000/-
5,35,000/- 6,42,000/- 5,35,000/- 6,42,000/-

(10)
OR
What do you mean by a cash flow statement? How does it differ from a funds
flow statement?
(3+7=10)

Q.2. A project requires an initial cash outlay of Rs.1,20,000/-. Its life span is estimated
to be 5 years. It generates the annual cash inflows as follows: ferdi

Year Annual cash inflows

1 Rs.30,000/-
2 Rs.30,000/-
3 Rs.50,000/-
4 Rs.30,000/-
5 Rs.40,000/-

Calculate the pay-back period of the project. Also suggest whether it should be
accepted, if the minimum pay-back period is 3 years.
(10)
FM/NOV/ODD/18-19/01/NC Page 1 of 4

total inflow for first 3 years is Rs. 110000 which is less than investment amount Rs. 120000.
so if the minimum pay back period is 3 years, the project will be rejected.
 SUBJECT CODE: BHM307 EXAM DATE: 19.11.2018

Q.3. Explain the meaning of financial analysis. Discuss the various techniques of
making financial analysis of a five-star hotel.
(3+7=10)

Q.4. What do you mean by capital structure? Discuss the various factors that influence
the capital structure of a company
(3+7=10)
OR
Define capital budgeting. How is it important for a five star hotel? Also
enumerate the limitations of capital budgeting.
(2+4+4=10)

Q.5. Discuss the various concepts of working capital. Also explain the various factors
that influence the working capital requirements of a hotel.
(3+7=10)

Q.6. Explain the meaning, causes and effects on the following:

(a) Over capitalisation
(b) Under capitalisation
(5+5=10)
OR
Define a financial plan. Enumerate the requisites of a good financial plan.
(3+7=10)

Q.7. Calculate cash from operations for the year 2016 from the following information:

2015 (Rs.) 2016 (Rs.)

Net profit for the year - 1,40,000/-
Sundry debtors 42,000/- 40,000/-
Bills receivable 8,000/- 13,000/-
Sundry creditors 47,000/- 50,000/-
Bills payable 15,000/- 10,000/-
Stock in trade 58,000/- 65,000/-
Provision for tax 12,000/- 18,000/-

OR
Explain the following in brief:
(a) Wealth maximization objective (b) Over trading
(c) Profitability index (d) Trend analysis
(e) Funds from operations
(5x2=10)

FM/NOV/ODD/18-19/01/NC Page 2 of 4
Goodwill tuition centre for accountancy and income tax , Ernakulam Ph: 9567902805
SUBJECT CODE: BHM307 EXAM DATE: 19.11.2018

Q.8. From the information furnished below, calculate:

FERDI

(a) Gross profit ratio (b) Net profit ratio

(c) Current ratio (d) Acid test ratio
(e) Inventory turnover ratio

Amount (Rs.)
Net sales 5,00,000/-
Cost of goods sold 2,55,000/-
Net profit after tax 45,000/-
Creditors 6,000/-
Bills payable 10,000/-
Accrued expenses 5,000/-
Income tax payable 13,000/-
Sundry debtors 30,000/-
Stock in trade 25,000/-
Cash and bank balances 34,000/-

(5x2=10)

Q.9. Convert the following income statements of ABC hotel into a comparative income
fredi
statement for the year 2016:

Particulars 2015 (Rs.) 2016(Rs.)

Net sales 1,50,000/- 1,80,000/-
Cost of sales 70,000/- 80,000/-
Administration expenses 25,000/- 20,000/-
Selling expenses 10,000/- 15,000/-
Interest paid 3,000/- 2,000/-
Income tax 40% 50%

(10)
 SUBJECT CODE: BHM307 EXAM DATE: 19.11.2018

Q.10. Fill in the blanks:

(a) Capital budgeting is also known as __________.
(b) There is a time gap between cash inflows and__________.
(c) __________ is called the life blood of a business.
(d) NPV is the difference between present value of cash inflows and
__________.
(e) Capital gearing refers to the relationship between equity capital & reserves
and ______________.
(f) The discount rate at which the present value of cash inflows and cash
outflows become equal is known as__________.
(g) Ratio of net sales to fixed assets is called __________.
(h) Depreciation is sometimes treated as __________ of funds.
(i) The ratios calculated to test the short term solvency position of a company
are called __________ ratios.
(j) __________ statement shows the cash inflows and cash outflows of a
business during a given period.
(10x1=10)
Goodwill tuition centre for accountancy and income tax , Ernakulam Ph: 9567902805

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 SUBJECT CODE: BHM307 EXAM DATE: 25.11.2013

ROLL No…………….

NATIONAL COUNCIL FOR HOTEL MANAGEMENT

AND CATERING TECHNOLOGY, NOIDA
ACADEMIC YEAR – 2013-2014

COURSE : 5th Semester of 3-year B.Sc. in H&HA

SUBJECT : Financial Management
TIME ALLOWED : 03 Hours MAX. MARKS: 100
______________________________________________________________________
(Marks allotted to each question are given in brackets)
______________________________________________________________________
Q.1. Financial Planning is key to success. What are the basic fundamentals of
financial planning?
OR
Explain the goals of financial management.
(10)

Q.2. Define working capital. What factors would you take into consideration in
estimating the working capital needs of a budget hotel?
OR
What do you understand by the term “over capitalization”? State the factors
responsible for such a state of affairs.
(10)

Q.3. Write short notes on:

(a) Debt-equity Ratio
(b) Over-Trading
(c) Any two financial statements
OR
Evaluate the following as a form of financing:
(a) Equity shares
(b) Preference shares
(c) Debentures
(3+3+4=10)

Q.4. Write short notes on:

(a) Deferred Revenue Expenditure
(b) Pay Back Period Method
(c) Net Working Capital
(d) Net Present Value Method
(4x2 ½ =10)

FM/NOV/ODD/13/04 Page 1 of 4
Goodwill tuition centre for accountancy and income tax , Ernakulam Ph: 9567902805
SUBJECT CODE: BHM307 EXAM DATE: 25.11.2013

Q.5. From the following Balance Sheets of Arora Co. Ltd. for the period 31st March
2009 and 31st March 2010, prepare schedule of changes in Working Capital and
Funds Flow Statement:

BALANCE SHEET AS ON 31ST MARCH

Liabilities 2009 2010 Assets 2009 2010

Amount in ` Amount in ` Amount in ` Amount in `
Share capital 3,00,000/- 4,00,000/- Plant 95,000/- 90,000/-
Sundry 60,000/- 30,000/- Furniture 20,000/- 40,000/-
Creditors
Bills Payable 40,000/- 70,000/- Equipment - 70,000/-
Debtors 1,60,000/- 1,50,000/-
Stock 1,25,000/- 1,50,000/-
TOTAL 4,00,000/- 5,00,000/- TOTAL 4,00,000/- 5,00,000/-

(10)

Q.6. There are two projects A & B. Each project require an investment of `2,00,000/-.
Rank these projects according to the ‘Pay Back Period’ method on the basis of
the following information:

PROFIT/ INFLOWS OF CASH

Years Project A in ` Project B in `

1 10,000 20,000
2 20,000 40,000
3 40,000 60,000
4 50,000 80,000
5 80,000 -

(10)

Q.7. State True or False:

(a) Gross profit is sales minus cost of goods sold.
(b) Working capital is the difference between current assets minus current
liabilities.
(c) Average Stock is calculated:
Opening Stock plus closing stock
2
(d) Equity share capital is also known as risk capital.
(e) Retaining of huge cash balances is a sound policy.
(5x1=5)
FM/NOV/ODD/13/04 Page 2 of 4
SUBJECT CODE: BHM307 EXAM DATE: 25.11.2013

Q.8. Following are the Balance Sheets of a concern for the years 2000 and 2001.
Prepare a comparative balance sheet and study/report on the financial position of
the concern:

Liabilities 2000 2001 Assets 2000 2001

Amount in ` Amount in ` Amount in ` Amount in `
Share capital 6,00,000/- 8,00,000/- Land & Building 3,70,000/- 2,70,000/-
Reserves & Surplus 3,30,000/- 2,22,000/- Plant 4,00,000/- 6,00,000/-
Debentures 2,00,000/- 3,00,000/- Furniture 20,000/- 25,000/-
Loan 1,50,000/- 2,00,000/- Other fixed assets 25,000/- 30,000/-
Bills Payable 50,000/- 45,000/- Cash & Bank 20,000/- 80,000/-
Sundry Creditors 1,00,000/- 1,20,000/- Bills Receivable 1,50,000/- 90,000/-
Current Liabilities 6,000/- 10,000/- Sundry Debtors 2,00,000/- 2,50,000/-
Stock 2,50,000/- 3,50,000/-
Pre-paid expenses 1,000/- 2,000/-
TOTAL 14,36,000/- 16,97,000/- TOTAL 14,36,000/- 16,97,000/-

OR

Rank the following projects in the order of their desirability according to the Net Present
Value Method:

Project Year 1 - ` Year 2 - ` Year 3 - ` Year 4 - ` Year 5 - `

A 5000 10000 10000 3000 2000
B 20000 10000 5000 3000 2000

Initial investment:
Project A - `20000
Project B - `30000
Discount rate 10%
Present value `1/- @10% (discount factor) using present value tables:

Year1 Year 2 Year 3 Year 4 Year 5

.909 .826 .751 .683 .621

(15)

Q.9. Distinguish between Fund Flow Statement and Cash Flow Statement.
(10)
 SUBJECT CODE: BHM307 EXAM DATE: 25.11.2013

Q.10. Following is the Profit & Loss Account of M/s. Arbaz Hotel Ltd. for the period
ending 31.03.2010. Calculate:

(a) Gross profit ratio

(b) Net profit ratio
(c) Operating ratio
(d) Administrative expenses ratio

Debit Amount in ` Credit Amount in `

To opening stock 1,00,000/- By sales 5,60,000/-
To Purchases 3,50,000/- By closing stock 1,00,000/-
To Wages 9,000/-
To gross profit 2,01,000/-
TOTAL 6,60,000/- TOTAL 6,60,000/-
To Administrative expenses 20,000/- By gross profit 2,01,000/-
To Selling & Marketing expenses 89,000/- By interest (outside business) 10,000/-
To Non-operating expenses 30,000/- By Profit on sale on investment 8,000/-
To Net Profit 80,000/-
TOTAL: 2,19,000/- TOTAL: 2,19,000/-

(10)

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Goodwill tuition centre for accountancy and income tax , Ernakulam Ph: 9567902805