LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.Com. DEGREE EXAMINATION – COMMERCE

FIRST SEMESTER – NOVEMBER 2012

CO 1812 – ADVANCED BUSINESS STATISTICS

 

 

Date : 01/11/2012            Dept. No.                                        Max. : 100 Marks

Time : 1:00 – 4:00

 

Section: A

Answer all the questions:                                                                    10 x 2 =20

 

• A man travels 20kms at 40kms per hour, 10 kms at 60kms per hour, what is his average speed?
• State whether the following statements are True or False:

1. a) The positively skewed distribution of the value of mode is greater than the mean.
2. b) The median is a positional measure of central tendency.

• Fill in the blank: When the mean is 79 and variance is 64, CV——————?
• What is Skewness?
• Distinguish between Positive and Negative Correlation.
• What is Time Series?
• Two cards are drawn from a well shuffled pack of 52 cards. Find the probability that they are both aces, if the first card is not replaced.
• What is meant by theoretical frequency distribution?
• What are Type I and Type II errors in testing hypothesis?
• What are non parametric tests?

Section: B

Answer any five questions:                                                                 5 x 8 = 40

 

• Distinguish between process control and product control. State the utilities of Statistical Quality Control.
• Explain the procedure followed in testing a hypothesis.
• Discuss the utilities of time series analysis to a businessman and to an economist.
• Calculate Karl Pearson’s coefficient of skewness from the following data:

Marks	15	20	25	30	35	40
No of students	12	18	25	24	20	21

 

• You are given below the following information about advertisement expenditure and Sales:

Particulars	Advertisement Expenditure (X)	Sales (Y)
Mean	`20 crores.	`120 crores.
S.D	`5 crores.	`25 crores.

Correlation coefficient 0.8

Calculate the two regression equations.

Find the likely sales when advertisement expenditure is `25crores.

What should be the advertisement budget if the company wants to attain sales target of `150crores.

• The following table shows the number of customers returning the products in a marketing territory. Fit a Poisson Distribution.

Number of Returns	0	1	2	3	4	5	6
Number of Stores	4	14	23	23	18	9	9

 

• The following contingency table shows that classification of 1000 workers in a factory, according to the disciplinary action taken by the management and their promotional experience:

Disciplinary Action	Promotional Experience		Total
	Promoted	Not Promoted
Offenders	30	670	700
Non offenders	70	230	300
Total	100	900	1000

Use Chi-Square test to ascertain whether the disciplinary action taken and promotional experience are associated.

 

• A) A company has been producing steel tubes of mean inner diameter of 2cm. A sample of 10 tubes gives an inner diameter of 2.01 cm and a variance of 0.004cm. Is the difference in the value of mean significant? The value of t for 9 df at 5% level = 2.262.

 

3. B) A sample of 900 items has a mean 3.4 and a standard deviation 2.61. Can the sample be regarded as drawn from a population with a mean 3.25 at 5% level of significance?

 

 

 

 

 

 

Section: C

Answer any two questions:                                                                2 x 20 = 40

 

• The sales of a company for the last eight years are given below:

Year	2004	2005	2006	2007	2008	2009	2010	2011
Sales ( ` in thousands)	52	45	98	92	110	185	175	220

Fit a straight line trend by the method of least squares and estimate the sales for 2013.

 

• The following data represent the number of units of production per day  by 5 different workers using 4 different types of machines:

WORKERS	MACHINE TYPE
	A	B	C	D
1	44	38	47	36
2	46	40	52	43
3	34	36	44	32
4	43	38	46	33
5	38	42	49	39

Construct a Two Way ANOVA by coding method of subtracting each value by 40 to test whether the mean productivity is the same for the different machine type and to test whether the five men differ with respect to mean productivity.

 

• A company’s trainees are randomly assigned to groups which are taught a certain industrial inspection procedure by three different methods. At the end of the instructing period they are tested for inspection performance quality. The following are their scores.

Method	Scores
A	70	73	69	75	80	58
B	72	74	50	62	76	57	81
C	83	55	67	68	78

 

Use the Kruskal-Wallis Test to determine at the 0.05 level of significance whether the three methods are equally effective.

 

 

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LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600 034

M.Com. DEGREE EXAMINATION – COMMERCE

THIRD SEMESTER – NOVEMBER 2012

CO 3901 – ACCOUNTING AND FINANCIAL MANAGEMENT

 

 

Date : 16/11/2012            Dept. No.                                        Max. : 100 Marks

Time : 9:00 – 12:00

SECTION A

Answer ALL questions:

Each carries a maximum of 2marks.                                                                       (10×2=20)

 

 

1. State the rules forjournalizing under the double entry book keeping system
2. What is P/V ratio?
3. Sales: Rs. 1,25,000,

Cost of Sales Rs.75,000,

Direct expenses: Rs.22,000,

Calculate Gross profit ratio?

4. State the meaning of ‘Cash flow from financing activities’
5. What is Profitability Index?
6. Current ratio:1.8:1

Current liabilities are Rs.1, 25.000.

What is the value of Current assets?

7. Sales: Rs.3, 75,000. Gross profit: Rs. 93,750. Administrative, Selling & distribution expenses

Rs.23, 750. What is Net profit ratio?

8. Choose the correct answer:

While preparing Cash flow statement, decrease in the amount of Creditors result in

1. a) Increase in Cash, b) decrease in cash, c) no change in cash
2. How do you adjust depreciation in P&L a/c and in Balance sheet?
3. What is sales budget?

 

SECTION B

Answer ANY FIVE questions:

Each carries a maximum of 8 marks.                                                                        (5×8=40)

 

11. Explain the important accounting concepts and conventions
12. Explain the advantages and limitations of Ratio analysis
13. Explain the method of calculation for any four accounting ratios based on balance sheet
14. Classify the following transactions as
15. a) Cash flow from operating activities,
16. b) Cash flow from investing activities,
17. c) cash flow from the Financial activities:
18. Issue of debentures,
19. Payment of interest
20. Sale of building,
21. Cash sales,
22. Receipt of dividend,
23. Payment of tax,
24. Cash received from debtors,

8, Rent paid

 

15. You are Given the following Accounting ratios:

Current Ratio     = 2.8

Acid Test Ratio = 1.5

Net Working Capital = Rs. 1, 62,000

Using the above data you are required to findout:

• Current Assets
• Current Liabilities
• Liquid Assets
• Stock

 

16. From the following Balance Sheets as on 31^st December, prepare Cash Flow Statement as per AS3:

Balance Sheets

	2010	2009		2010	2009
Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Share Capital	1,50,000	1,00,000	Fixed Assets	1,50,000	1,00,000
Profit & Loss A/c	80,000	50,000	Goodwill	40,000	50,000
General Reserve	40,000	30,000	Stock	80,000	30,000
6% Debentures	60,000	50,000	Debtors	80,000	50,000
Creditors	40,000	30,000	Bills Receivable	20,000	30,000
Outstanding exp.	15,000	10,000	Bank	15,000	10,000
	3,85,000	2,70,000		3,85,000	2,70,000

 

17. Explain:

a)Payback period

b)Net present Value method,

c)IRR method

d)ARR method

18. From the following accounting information relating to Maze Ltd, you are required to calculate Net Present Value of the two project proposals. Advise which project is to be selected?

 Project Kathipera                Project Valsara

 

 

Initial Investment                     Rs.20,00,000                        Rs. 30,00.000

Estimated life                             5 years                                5 years

 

 

 

The profits for the five years are as follows:

Year               Project Kathipera(Rs)  Project Valsara (Rs)     P.V. factor @ 10%

1                            10,00,000                     14,00,000                      0.909

2                              6,00,000                    14 ,00,000                      0.826

3                              4,00,000                       5,00,000                      0.751

•      5,00,000                       5,00,000                      683

5                              5,00,000                       2,00,000                      0.621

 

SECTION C

Answer ANY TWO questions:

Each carries a maximum of 20 marks.                                                                   (2×20=40)

 

19 . Trial Balance of ThiruRenu as on 31^st march 2011 is furnished below. You are required to prepare an Income statement and a Balance sheet as on 31.03.11.

DebitsCredits

Land & Buildings              42,000             Capital                         62,000

Machinery                         20,000             Sales                            98,780

Patents                                7,500             Return outwards              500

Stock (opening)                   5,760              Creditors                      6,300

Debtors                             14,500              Bills Payable                9,000

Purchases                          40,675

Cash                                       540

Bank                                    2,630

Return Inwards                      680

Wages                                 8,480

Fuel & power                      4.730

Carriage outwards               3,200

Carriage inwards                 2,040

Salaries                             15,000

Insurance                               600

General expenses               3,000

Drawings by Renu             5,245

________                                   __________

1, 76,580                                      1, 76,580

—————-                              ——————

Adjustments:

1. Closing stock Rs.6800
2. Salary outstanding Rs.1,500
3. Insurance prepaid Rs.150
4. Depreciate machinery @10% and Patents @ 20%
5. Create provision of 2% on debtors for bad & doubtful debts

 

 

 

 

 

20.The Hosur plant of Jane Ventures is running at present, at 50% of its capacity.

The following cost details are available.

Cost of product per unit

Direct Materials                                           Rs. 2

Direct Labour                                               Rs. 1

Variable Overhead                                       Rs. 3

Fixed Overhead                                            Rs. 2

Total cost                                                                   Rs. 8

Production per month                                   20,000 units

Total cost of production                               Rs. 1,60,000

Sales                                                              Rs. 1,40,000

Loss :                                                                           Rs     20,000

An exporter offers to buy 5,000 units per month at the rate of Rs. 6.50 per unit.

You are required to advice whether the Firm should accept or decline this offer.

 

 

21. From the following forecasts of income and expenditure of Swastik Ltd, You are required to prepare a cash budget for the three months commencing 1^st June, when the bank balance was Rs. 1,00,000.

Sales     Purchases        Wages           Factory      Admin.and Selling

                                                                                      Expenses             Expenses

                                    Rs.               Rs.             Rs.              Rs.                Rs.

April                     80,000         41,000         5,600          3,900           10,000

May                      76,500         40,500         5,400          4,200          14,000

June                      78,500         38,500         5,400          5,100          15,000

July                      90,000         37,000         4,800          5,100           17,000

August                 95,000         35,000         4,700          6,000           13,000

 

A sales commission of 5 per cent on sales is payable two months after each month’s sales, in addition to selling expenses. Plant valued at Rs. 65,000 will be purchased and paid for in August, and the dividend of Rs. 15,000 will be paid in July. There is a two month credit period allowed to customers and also two months credit period received from suppliers.

 

22. The Electric appliances division of Sumo Ltd attains sales Rs.6,00,000 at 80% of its capacity. Given below are the administrative, selling and distribution costs:
23. Administrative costs:Office Salaries 90,000; General expenses 2% of Sales; depreciation 7,500; Rent 8750;
24. Selling Costs: Salaries 48,000; Travelling 12,000; sales commission 1% on sales; general sales expenses 6,000.
25. Distribution costs: Salaries 15,000; Rent 1% of sales; other expenses 4% of sales

Draw up a flexible budget for Administrative, selling and distribution budget at 80%, 90% and 100% capacity.

 

 

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