Scribd
Upload
46 views

Marian International Institute of Management Working Capital Management UNIT TEST IV (2x10 20)

This document contains instructions for a unit test on working capital management. It includes 3 questions: 1. The first question asks to discuss whether trade credit is a source of working capital financing. 2. The second question asks to discuss the various sources of working capital financing. 3. The third question provides income and expense estimates for several months and asks to prepare a cash budget from April to June based on the additional information provided, such as payment terms, tax payments, and expected cash balances.

Uploaded by

narunsankar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
46 views

Marian International Institute of Management Working Capital Management UNIT TEST IV (2x10 20)

This document contains instructions for a unit test on working capital management. It includes 3 questions: 1. The first question asks to discuss whether trade credit is a source of working capital financing. 2. The second question asks to discuss the various sources of working capital financing. 3. The third question provides income and expense estimates for several months and asks to prepare a cash budget from April to June based on the additional information provided, such as payment terms, tax payments, and expected cash balances.

Uploaded by

narunsankar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

MARIAN INTERNATIONAL INSTITUTE OF MANAGEMENT

WORKING CAPITAL MANAGEMENT


UNIT TEST IV (2x10=20)
1.”Is Trade Credit a sources of working capital finances?”Discuss.
2. What are the sources of working capital finance? Discuss
3. From the Estimates of Income and Expenditure, prepare Cash Budget for the months from
April to
June.
Month Sales Rs. Purchases Rs. Wages Rs. Office Exp Rs. Selling Exp Rs.
Feb 1,20,000 80,000 8,000 5,000 3,600
Mar 1,24,000 76,000 8,400 5,600 4,000
Apr 1,30,000 78,000 8,800 5,400 4,400
May 1,22,000 72,000 9,000 5,600 4,200
June 1,20,000 76,000 9,000 5,200 3,800

(i)Plant worth Rs.20, 000 purchased in June 25% payable immediately and the remaining in two
equal installments in the subsequent months.
(ii)Advance payment of tax payable in Jan and April Rs.6000
(iii)Period of credit allowed:
(a) By suppliers 2 months
(b) To Customers 1 month
(iv)Dividend payable Rs.10, 000 in the month of June.
(v)Delay in payment of wages and office expenses 1 month and selling expenses ½ month.
Expected cash balance on 1st April is Rs.40, 000.

You might also like