Dedicated to the Young and Energetic Force of Bankers
Sign In/Sign Out

WELCOME

   ABM-Case Studies

   ABM-Recollected

   ABM-Last Minute

   BFM-Case Studies

   BFM-Recollected

   BFM-Last Minute

   Important Circulars

   Master Circulars

   Bank DA Rates

   Bank Holidays

   Life Ins Companies

   List of PSBs

   List of Private Banks

   List of Foreign Banks

 

CAIIB - ABM- CASE STUDIES / NUMERICAL QUESTIONS

Summary of a Balance sheet of XYZ Company

Current Liabilities (in Crores)

Cash Credit - 800
Trade Creditors - 4500
Other Current Liabilities - 1200

Total Current Liabilities – 6500

Current Assets (in Crores)

Cash - 1500
Inventory - 5000
Debtors - 1400
Other Current Assets - 600

Total Current Assets - 8500

Find out

1. Current Ratio

a. 1
b. 1.31
c. 1.5
d. 2

Ans - b

Current Ratio = CA/CL = 8500/6500 = 1.31

2. Acid-Test Ratio

a. 0.33
b. 0.54
c. 0.66
d. 0.75

Ans - b

Acid-Test Ratio = Quick Assets/CL = (CA-Inv)/CL = (8500-5000)/6500 = 3500/6500 = 0.54

3. Net Working Capital

a. 2000
b. 3500
c. 6500
d. 8500

Ans - a

Net Working Capital = CA - CL = 8500 - 6500 = 2000

4. Working Capital Cap

a. 1400
b. 2800
c. 5700
d. 6500

Ans - b

Working Capital Cap = CA - (CL - BB) = 8500 - (6500 - 800(CC)) = 8500 - 5700 = 2800

5. MPBF as per Tandon Committee - Method-I

a. 700
b. 1400
c. 2100
d. 3000

Ans - c

MPBF as per Tandon Committee - Method-I = WCG - 25% of WCG = 2800 - 25% of 2800 = 2800 - 700 = 2100

6. MPBF as per Tandon Committee - Method-II

a. 675
b. 750
c. 875
d. 950

Ans - a

MPBF as per Tandon Committee - Method-II = WCG - 25% of CA = 28000 - 25% of 8500 = 2800 - 2125 = 675

7. Current Ratio as per Tandon Committee - Method-I

a. 1
b. 1.09
c. 1.33
d. 1.66

Ans - b

Current Ratio as per Tandon Committee - Method-I = CA / (MPBF + Trade Creditors + Other CL) = 8500 / (2100+4500+1200) = 8500 / 7800 = 1.09

8. Current Ratio as per Tandon Committee - Method-II

a. 1
b. 1.09
c. 1.33
d. 1.66

Ans - c

Current Ratio as per Tandon Committee - Method-II = CA / (MPBF + Trade Creditors + Other CL) = 8500 / (675+4500+1200) = 8500 / 6375 = 1.33

9. Borrowing by the way of Cash Credit when compared with Tandon Committee - Method-I

a. 700
b. 1000
c. 1300
d. 1800

Ans - c

Borrowing by the way of Cash Credit = 800
MPBF as per Tandon Committee - Method-I = 2100
So, Borrowing by the way of Cash Credit is short by (2100 - 800) = 1300 Crores

10. Borrowing by the way of Cash Credit when compared with Tandon Committee - Method-II

a. 100
b. 125
c. 150
d. 175

Ans - b

Borrowing by the way of Cash Credit = 800
MPBF as per Tandon Committee - Method-II = 675
So, Borrowing by the way of Cash Credit is excess by (800 - 675) = 125 Crores

……………………………………………………………………………………………………………………………………………

 


WEBSITES

  Bank Promotion exams

  Only for Bankers

  RBI

  IIBF

  IRDA

  SEBI

  BCSBI

  CIBIL

  Banking and Insurance

  Ministry of Finance

  Excise & Customs

  Income Tax Department

  NSE

  BSE


       

Copyright @ 2017 : www.jaiibcaiibmocktest.com