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Practice Exercise-10

In document DI Practice Set -K.kundan (Page 187-194)

Directions (Q. 1-3): Answer the questions on the basis of the information given below.

The data below shows the rankings of twenty-five companies on the basis of various parameters as shown below.

Rank Companies

Total Income Net Profit Net Worth NPM RONW ROCE

2004 2004 2004 2004 2004 2004

2004 Rs Crore % chg Rs Crore % chg Rs crore % chg % % %

1 Tata Sons 4410.86 35.39 863.29 20.97 3396.38 25.91 19.57 25.42 14.55

2 Tata International 1970.32 -9.28 -830 108.15 -7.13 -0.42 -7.67 -2.92 3 Teech Pacific (India) 1772.39 40.95 26.9 -9.1 87.79 43.76 1.52 30.64 12.11

4 TV Sundram

Iyengar & Sons 1754.07 4.79 34.28 101.7 130.95 7.76 1.95 36.18 11.96 5 Nirma Consumer Care 1604.4 -12.76 0.39 77.27 3.13 13.82 0.02 12.46 0.99 6 Bennett, Coleman & Co. 1457.18 19.95 49.73 -75.85 910.14 5.52 3.41 5.46 5.46 7 Haldia Petrochemicals 1434.91 15.686 -501.55 614.09 -44.96 -35 -81.67 -9.24 8 Toyota Kirloskar Motor 1695.26 22.25 -102.01 452.38 -18.41 -6.02 -22.55 -12.25

9 Adani Wilmar 1166.78 179.11 11.63 5.73 58.42 58.84 1.00 19.91 11.67

10 Ford India 1064.79 -60.52 321.87 -15.83 -5.68 -18.8 -3.87

11 Gitanjali Gems 1032.47 -74.87 21.9 -51.72 207.94 11.77 2.12 10.53 4.71

12 Hero Cycles 985.04 5.38 68.56 83.46 264.36 24.06 6.96 25.93 16.4

13 Riddisiddhi Bullions 952.67 130.67 0.21 505.5 1.85 190.41 0.02 11.55 3.12 14 Samsung Electronics 941.81 44.36 4.91 -4.11 34.94 16.36 0.52 14.06 6.43 15 Godrej & Boyce Mfg Co. 889.54 5.07 11.45 -5.99 280.65 3.75 1.29 4.08 1.57

16 Allanasons 562.87 -0.4 4.78 33.87 64.51 1.82 0.55 7.42 5.75

17 Honda Siel Cars India 855.45 18.89 26.48 235.3 12.68 3.1 11.25 5.22 18 Bharat Aluminium Co. 826.96 -17.88 18.76 588.06 -2.98 2.27 3.19 2.42

19 Lafarge India 816.46 69.31 -14.39 649.73 137.02 -1.76 -2.21 -1.06

20 Reliance Ports &

Terminals 806.67 49.23 -20.97 491.38 -4.09 -2.6 -4.27 -0.69

21 Tractors & Farm

Equipment 805.42 -6.13 23.83 -0.96 416.18 5.16 2.96 5.73 4.51

22 Bhushan 805.12 34.38 26.18 13.28 240.84 12.16 3.25 10.87 4.06

23 Jaypee Cement 1200.44 117.88 63.39 245.05 26.05 5.28 25.87 6.88

24 Essar Power 1140.51 -15.21 62.39 -34.35 781.71 21.29 5.47 7.98 2.77

25 Bharti Cellular 725.73 38.96 98.63 16.05 287.89 42.15 13.59 34.26 4.64

1. In how many companies was the percentage change for net worth greater than the percentage change for total income?

1) 13 2) 20

3) 12 4) 16

2. Which of the following is true?

1) The percentage ROCE for the top five companies is always less than the percentage RONW.

2) The percentage ROCE for the top five companies is always greater than the percentage RONW.

3) The percentage ROCE for the top five companies is greater than the percentage RONW for only one company.

4) None of the above is true.

3. Which of the following statements is not true?

1) As many companies are ranked above RiddhiSiddhi Bullions as below it.

2) The net worth as a percentage of total income for Hero cycles is 26.8%

3) If the top ten companies were ranked on the basis of net profit, from highest to lowest, the fifth-ranked company would be Adani Wilmar.

4) All are true

Directions (Q. 4-6): Answer the questions on the basis of the information given beow.

Each point in the graph below shows the profit and turnover for a company. Each company belongs to one of the three industries: Service, Shipping and Banking.

1000

Profit

4. For how many companies does the profit exceed 10% of the turnover?

1) 8 2) 7

3) 6 4) 5

5. For how many banking companies with a turnover of more than 2000 is the profit less than 300?

1) 0 2) 1

3) 6 4) 7

6. An investor wants to buy stocks of only banking or shipping companies with a turnover of more than 1000 and profit exceeding 10% of turnover. How many choices are availiable to the investor?

1) 6 2) 7

3) 4 4) 5

Directions (Q. 7-9): Answer the questions on the basis of the information given below.

The following table shows the data about ages, height and weight of randomly selected 100 chil-dren of CATMOS Montessori. Table 1 provides data about ages of the chilchil-dren. For the age given in the first column, the second column gives the number of children not exceeding that age.

For example, the first entry indicates that there are 9 children aged 4 years or less. Tables 2 and 3 provide data on the heights and weights respectively on the same group of 100 children in a similar format. Assuming that an older child is always taller and weighs more than a younger child, answer the following questions.

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TABLE 1 Age (years) Number

4 Height (cm) Number

115 Weight (kg) Number

30

7. What is the number of children of age 9 years or less whose height does not exceed 135 cm?

1) 48 2) 45 3) 3 4) Cannot be determined

8. How many children of age more than 10 years are taller than 150 cm and do not weigh more than 48 kg?

1) 16 2) 40 3) 9 4) Cannot be determined

9. Among the children older than 6 years but not exceeding 12 years, how many weigh more than 38 kg?

1) 34 2) 52 3) 44 4) Cannot be determined

Directions (Q. 10-12): Answer the questions on the basis of the information given below.

Nature’s Best Juices (NBJ) is in the business of manufacturing fruit juices. NBJ buys APPLE, MANGO, GRAPE, ORANGE and LITCHEE juice. ORANGE juice can be made by adding artificial flavour to APPLE and MANGO juice in equal proportions. Similarly, LITCHEE juice can also be made by APPLE and GRAPE juice. Among other juices, NBJ sells MIXED JUICE (formed by mixing GRAPE and MANGO juice in the ratio 70 : 30), TROPICAL DELIGHT JUICE (formed by mixing equal amounts of ORANGE and LITCHEE juice) and SUMMER SONG juice (formed by mixing equal amounts of ORANGE and GRAPE juice). The following table provides the price at which NBJ buys the juices.

FLAVOUR Rs/Litre

10. The cheapest way to manufacture TROPICAL DELIGHT juice would cost 1) Rs 19.50 per litre 2) Rs 19.75 per litre 3) Rs 20.00 per litre 4) Rs 20.25 per litre 11. SUMMER SONG can be manufactured by mixing

1) MIXED JUICE and APPLE in the ratio 14 : 10 2) MIXED JUICE and APPLE in the ratio 3 : 1 3) MANGO and LITCHEE in the ratio 1 : 1

4) APPLE, MANGO and GRAPE in the ratio 1 : 1 : 2

12. Assume that TROPICAL DELIGHT, MIXED JUICE and SUMMER SONG each sell for the same price.

Which of the three is the most profitable to the manufacturer?

1) TROPICAL DELIGHT 2) MIXED JUICE

3) SUMMER SONG 4) Data is insufficient

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Directions (Q. 13-17): Answer the questions on the basis of information given below.

The following radar graph shows the percentage increase in the sale of companies A, B, C, D and E in year 2004 with respect to previous year.

0 20 40 60 80

A

B

C D

E

13. Which company has the maximum sale in year 2004?

1) A 2) C 3) E 4) Can’t be determined

14. The ratio of sale of companies A, B, C, D and E in year 2003 is 5 : 4 : 3 : 2 : 6. Find the overall % increase in the sale of all the five companies together in year 2004.

1) 46% 2) 54% 3) 59% 4) 64%

15. The overall % increase in the sale of company C and company D together is 55% in year 2004.

Find the ratio of sale of company C and D in year 2004?

1) 80 : 13 2) 192 : 17

3) 84 : 31 4) 192 : 53

16. If the ratio of sale of company C, D and E in year 2004 is 5 : 3 : 4 then find the overall % increase in the sale of company C, D and E together from 2003 to 2004 (approx.).

1) 41% 2) 39% 3) 54% 4) 46%

17. The overall % increase in the sale of companies B & C together is 57% and that of companies C &

D together is 47% in year 2004. Find the ratio of sale of companies C, D and E in year 2003.

1) 3 : 7 : 23 3) 5 : 9 : 13

3) 6 : 7 : 11 4) None of these

Directions (Q. 18-20): Read the following information given below and answer the questions that follow.

The Shyam Dairy company is setting up a plant for manufacture and sale of flavoured milk. The investment of the plant is Rs 10 crores (to be invested in plant, machinery, advertising, infra-structure etc).

The following table shows the cost of different bottle sizes.

Bottle size Bottling cost Cost of liquid Transportation cost Sale Price

Dealer Margin 300 ml Rs 2 Rs 8 10 paise per bottle Rs 14 Rs 1.5 500 ml Rs 5 Rs 10 15 paise per bottle Rs 21 Rs 2

1.5 lit Rs 10 Rs 25 20 paise per bottle Rs 52 Rs 5

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18. For which bottle should Shyam Dairy try to maximise sale to maximise its profit (assume that the total number of litres of flavoured milk sold is constant irrespective of break-up of the sales in terms of the bottle size).

1) 1500 ml bottle 2) 500 ml bottle 3) 300 ml bottle 4) Can’t say

19. If the company sells only 300ml bottles in the first year, how many bottles shoud it sell to recover the investment made in the first year only?

1) 41.66106 2) 35.84106

3) 44.56106 4) Can’t say

20. If the ratio of sales of 300ml bottles to that of 500ml bottles is 4 : 1, and there is no sale of 1500ml bottles, how many 500ml bottles will be required to recover the investment?

1) 17.96106 2) 24.8106

3) 7.43106 4) Can’t say

Answers and explanations

1. 1; The percentage change to net worth is greater than the percentage change for total income in 13 companies.

2. 3; The percentage ROCE for the top five companies is greater than the percentage RONW for only the company Tata International.

3. 3; 1st to 5th are: Tata Sons, Bharti, Hero, Jaypee and Essar respectively.

4. 2; Draw a line from the bottom left corner to top right corner. The symbols lying above the line are ones in which profit exceeds 10% of turnover. There are 6 such companies.

5. 3; Six companies lie below 300 profit and more than 2000 turnover.

6. 4; Only five companies fulfil the requirement.

7. 2; Number of children aged 9 years or less = 48

Number of children having height 135 cm or less = 45 Thus 45 children satisfy both conditions.

8. 1;

Number of children

age > 10 years 40

height > 150 cm 25

weight > 48 kg 9

Thus required number of children = 25 – 9 = 16.

9. 3;

Number of children 12 years > age > 6 years 55

weight > 38 kg 67

Required number of children = 67 – 23 = 44.

10. 2; TROPICAL DELIGHT juice would cost minimum when its constituents have the minimum pos-sible price. TROPICAL DELIGHT is made by mixing equal amounts of ‘ORANGE’ and ‘LITCHEE’.

We have the following possibilities:

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From the table we have the minimum cost Rs 1975.

11. 4; The possible combinations for SUMMER SONG are given below.

Combination Ratio

ORANGE + GRAPE 1 : 1

(APPLE AND MANGO) + GRAPE 1 : 1 : 2

12. 2; From Q. 10 we have: the least possible price for TROPICAL DELIGHT is Rs 19.75 per litre.

Similarly, least possible price for MIXED JUICE is Rs 18 per litre (when GRAPE + MANGO are mixed in the ratio 70 : 30). And least possible price for SUMMER SONG is Rs. 18.5 pre litre (when ORANGE + GRAPE is mixed in the ratio 1 : 1).

Hence profitability is maximum for MIXED JUICE .

13. 4; Only the percentage increase in the sales of each of the company is given, not the previous year’s sale. Hence data inadequate.

14. 2; The overall % increase in the sales of all the five companies together 20 40

30 6 20 60 2 20 50 3 20 80 4 20

5         

% 54 12 3 9 10

20    

15. 1; 55% increase in the sales of company C and D together is the weighted mean of 60% and 30% .

C D

60% 30%

55%

25 5

5 : 1 (Ratio of sale in year 2003) Now,

2004 year in D company of

Sale

2004 year in C company of

Sale

= 13

80 100 1 130

100 5 160

 Required ratio = 176 : 13

16. 4; Let K be present in each of the ratios.

K

Total 12K 8.2K

The overall % increase = 100 17. 1; Similar to solution of Q. 15.

B C C D Selling 1500ml from 300ml bottles we get 2.4 × 5 = Rs 12 as profit.

Similarly, selling 1500 ml from 500ml bottles we get = 3.85 × 3 = Rs 11.55 as profit Selling 1500ml from 1500ml bottle we get Rs 11.80 as profit.

Therefore, Shyam Dairy should maximise the production of 300ml bottles. (As the number of litres is constant)

19. 1; Let no. of bottles it should sell be x.

Cost of production of x bottles = x (2 + 8 + 0.1 + 1.5) = 11.6x Fixed cost = 108

Now, to recover the cost 6 14

Quicker Approach: From solution of Q. 18.

Profit per bottle = Rs 2.4

 Total no. of bottles to sell = 2.4 108 20. 3; Let K be present in the ratio.

The overall selling cost of 300 ml and 500 ml (where they are sold in the ratio 4 : 1)

= 15.4

Cost of production of 300ml bottle = Rs 11.6 Cost of production of 500ml bottle = Rs 17.15

Now,

   

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In document DI Practice Set -K.kundan (Page 187-194)

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