Question

If working capital has to be managed out of the loan funds, then what percentage (approximately) of loan funds should be set apart for this purpose?

• A. 25\(\%\)
• B. 40\(\%\)
• C. 55\(\%\)
• D. 70\(\%\)
• A. 2000 crore
• B. 3000 crore
• C. 3500 crore
• D. 3800 crore
• A. 200 crore
• B. 240 crore
• C. 270 crore
• D. 285 crore
• A. Rs. 144 crore
• B. Rs. 152 crore
• C. Rs. 164 crore
• D. Rs. 184 crore
• A. Rs. 288 crore
• B. Rs. 312 crore
• C. Rs. 344 crore
• D. Rs. 432 crore

Answer 1

The Correct Option is C

The correct option is (C): 55\(\%\)
Explanation:
If working capital needs to be managed using loan funds, the percentage of loan funds that should be allocated or utilized for working capital
=\(\frac{20.3}{36.2}\times 100\approx \frac{20}{36}\times100=55\%\)

Answer 2

The correct option is (B): 3000 crores
The total amount spent on purchasing land, machinery, setting up plants, and capital works is approximately
\(\approx \frac{75}{100}\times4000=Rs.\space 3000 \space crore\)

Answer 3

The correct option is (D): 285 crores
Total cash credits obtained by the company.
=\(\frac{7.1}{100}\times4000=Rs. 284 \space Crore\)

Answer 4

The correct option is (C): Rs. 164 crores
Capital obtained by the company through the redemption of its investments
=\(\frac{4.1}{100}\times4000=164\space crore\)

Answer 5

The correct option is (A): Rs. 288 crores
If the company were to manage its entire working capital solely from internal resources, the percentage of remaining funds.
\(27.5-20.3=7.2\%\)
Funds available for other uses =\(\frac{7.2}{100}\times4000=Rs.\space288 \space crore\)