Download JNTUK (Jawaharlal Nehru Technological University Kakinada) B.Tech 2-2 (2nd Year 2nd Sem) MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS Question Paper.
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Code No: R22013
II B. Tech II Semester Regular Examinations August - 2014
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to CE, ME)
Time: 3 hours Max. Marks: 75
Answer any FIVE Questions
All Questions carry Equal Marks
~~~~~~~~~~~~~~~~~~~~~~~~
1. Define Managerial Economics. Explain its characteristics and importance.
2. Define price elasticity of demand. What are the different methods used to measure the price
elasticity?
3. Define MRTS. Explain Cobb-Douglas Production function.
4. What do you mean by a market? What are the concepts considered for dividing the markets?
What are the features of Perfect competition?
5. Define business cycle. What are its phases and features?
6. Calculate the net present value of two projects and suggest which of the two projects should be
accepted assuming a discount rate of 10%.
Project A Project B
Initial Investment Rs. 30000 Rs.50000
Estimated life 5 years 5 Years
Scrap Value Rs.2000 Rs.4000
Annual Cash inflows after tax and depreciation
Years 1 2 3 4 5
Project A 10000 15000 8000 6000 4000
Project B 40000 30000 10000 5000 4000
1 of 2
R10
SET - 1
FirstRanker.com - FirstRanker's Choice
FirstRanker.com
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Code No: R22013
II B. Tech II Semester Regular Examinations August - 2014
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to CE, ME)
Time: 3 hours Max. Marks: 75
Answer any FIVE Questions
All Questions carry Equal Marks
~~~~~~~~~~~~~~~~~~~~~~~~
1. Define Managerial Economics. Explain its characteristics and importance.
2. Define price elasticity of demand. What are the different methods used to measure the price
elasticity?
3. Define MRTS. Explain Cobb-Douglas Production function.
4. What do you mean by a market? What are the concepts considered for dividing the markets?
What are the features of Perfect competition?
5. Define business cycle. What are its phases and features?
6. Calculate the net present value of two projects and suggest which of the two projects should be
accepted assuming a discount rate of 10%.
Project A Project B
Initial Investment Rs. 30000 Rs.50000
Estimated life 5 years 5 Years
Scrap Value Rs.2000 Rs.4000
Annual Cash inflows after tax and depreciation
Years 1 2 3 4 5
Project A 10000 15000 8000 6000 4000
Project B 40000 30000 10000 5000 4000
1 of 2
R10
SET - 1
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
7. Define ratio. Explain different ratios used to analyse the performance of the organization.
8. The following Trial balance was extracted from the books of XYZ Ltd., on March 31, 2013.
Prepare a Trading account and Profit and loss account for the year ended March 31, 2013 and a
Balance sheet as on that date.
Closing stock was valued at Rs.9000
Ledger Account Amount
Debit Rs. Credit Rs.
Opening Stock 10000
Purchases and sales 20000 40000
Returns 2000 1000
Discount 1000 2000
Capital and Drawings 5000 65000
Cash and bank Overdraft 7000 12000
Debtors and Creditors 19000 12000
Carriage 3000
Freight 4000
Salaries 6000
Stationary 4000
Land and Building 35000
Plant and Machinery 15000
Fixtures and Fittings 5000
Bills Receivable & Payable 6000 4000
General Reserve 6000
Total 1,42,000 1,42,000
2 of 2
R10
SET - 1
FirstRanker.com - FirstRanker's Choice
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
II B. Tech II Semester Regular Examinations August - 2014
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to CE, ME)
Time: 3 hours Max. Marks: 75
Answer any FIVE Questions
All Questions carry Equal Marks
~~~~~~~~~~~~~~~~~~~~~~~~
1. Define Managerial Economics. Explain its characteristics and importance.
2. Define price elasticity of demand. What are the different methods used to measure the price
elasticity?
3. Define MRTS. Explain Cobb-Douglas Production function.
4. What do you mean by a market? What are the concepts considered for dividing the markets?
What are the features of Perfect competition?
5. Define business cycle. What are its phases and features?
6. Calculate the net present value of two projects and suggest which of the two projects should be
accepted assuming a discount rate of 10%.
Project A Project B
Initial Investment Rs. 30000 Rs.50000
Estimated life 5 years 5 Years
Scrap Value Rs.2000 Rs.4000
Annual Cash inflows after tax and depreciation
Years 1 2 3 4 5
Project A 10000 15000 8000 6000 4000
Project B 40000 30000 10000 5000 4000
1 of 2
R10
SET - 1
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
7. Define ratio. Explain different ratios used to analyse the performance of the organization.
8. The following Trial balance was extracted from the books of XYZ Ltd., on March 31, 2013.
Prepare a Trading account and Profit and loss account for the year ended March 31, 2013 and a
Balance sheet as on that date.
Closing stock was valued at Rs.9000
Ledger Account Amount
Debit Rs. Credit Rs.
Opening Stock 10000
Purchases and sales 20000 40000
Returns 2000 1000
Discount 1000 2000
Capital and Drawings 5000 65000
Cash and bank Overdraft 7000 12000
Debtors and Creditors 19000 12000
Carriage 3000
Freight 4000
Salaries 6000
Stationary 4000
Land and Building 35000
Plant and Machinery 15000
Fixtures and Fittings 5000
Bills Receivable & Payable 6000 4000
General Reserve 6000
Total 1,42,000 1,42,000
2 of 2
R10
SET - 1
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
II B. Tech II Semester Regular Examinations August - 2014
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to CE, ME)
Time: 3 hours Max. Marks: 75
Answer any FIVE Questions
All Questions carry Equal Marks
~~~~~~~~~~~~~~~~~~~~~~~~
1. How basic Managerial Economics is different from Economics? Explain its relation with other
subjects.
2. Define Elasticity of demand. Explain different types of elasticity of demand and its
significance.
3. What are Law of variable proportions and Law of returns to scale? What are Isocosts and
Isoquants?
4. Explain any two Managerial Theories of firm.
5. Define partnership. Explain the features, advantages and disadvantages of partnership.
6. From the following Balance sheet of Excellency Limited, calculate Debt-Equity Ratio.
Liabilities
Amount
Rs.
Assets Amount Rs.
Equity share capital 600000 Land and Building 1200000
Preference share capital 500000 Plant and Machinery 300000
15% debentures 800000 Sundry debtors 250000
Term loans 100000 Stock 150000
Secured loans 50000 Cash at Bank 100000
Short term loans 150000 Loans and advances 150000
Public deposits 200000 Preliminary expenses 50000
Share premium 20000 Discount on issue of shares 10000
Sundry creditors 80000 Loss on issue of debentures 45000
Reserve and Surplus 60000 P/L A/c- Accumulated up to
last year 450000
Less profit 55000
395000
Provision for taxation 50000
Capital reserve 40000
26,50,000 26,50,000
1 of 2
R10
SET - 2
FirstRanker.com - FirstRanker's Choice
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
II B. Tech II Semester Regular Examinations August - 2014
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to CE, ME)
Time: 3 hours Max. Marks: 75
Answer any FIVE Questions
All Questions carry Equal Marks
~~~~~~~~~~~~~~~~~~~~~~~~
1. Define Managerial Economics. Explain its characteristics and importance.
2. Define price elasticity of demand. What are the different methods used to measure the price
elasticity?
3. Define MRTS. Explain Cobb-Douglas Production function.
4. What do you mean by a market? What are the concepts considered for dividing the markets?
What are the features of Perfect competition?
5. Define business cycle. What are its phases and features?
6. Calculate the net present value of two projects and suggest which of the two projects should be
accepted assuming a discount rate of 10%.
Project A Project B
Initial Investment Rs. 30000 Rs.50000
Estimated life 5 years 5 Years
Scrap Value Rs.2000 Rs.4000
Annual Cash inflows after tax and depreciation
Years 1 2 3 4 5
Project A 10000 15000 8000 6000 4000
Project B 40000 30000 10000 5000 4000
1 of 2
R10
SET - 1
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
7. Define ratio. Explain different ratios used to analyse the performance of the organization.
8. The following Trial balance was extracted from the books of XYZ Ltd., on March 31, 2013.
Prepare a Trading account and Profit and loss account for the year ended March 31, 2013 and a
Balance sheet as on that date.
Closing stock was valued at Rs.9000
Ledger Account Amount
Debit Rs. Credit Rs.
Opening Stock 10000
Purchases and sales 20000 40000
Returns 2000 1000
Discount 1000 2000
Capital and Drawings 5000 65000
Cash and bank Overdraft 7000 12000
Debtors and Creditors 19000 12000
Carriage 3000
Freight 4000
Salaries 6000
Stationary 4000
Land and Building 35000
Plant and Machinery 15000
Fixtures and Fittings 5000
Bills Receivable & Payable 6000 4000
General Reserve 6000
Total 1,42,000 1,42,000
2 of 2
R10
SET - 1
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
II B. Tech II Semester Regular Examinations August - 2014
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to CE, ME)
Time: 3 hours Max. Marks: 75
Answer any FIVE Questions
All Questions carry Equal Marks
~~~~~~~~~~~~~~~~~~~~~~~~
1. How basic Managerial Economics is different from Economics? Explain its relation with other
subjects.
2. Define Elasticity of demand. Explain different types of elasticity of demand and its
significance.
3. What are Law of variable proportions and Law of returns to scale? What are Isocosts and
Isoquants?
4. Explain any two Managerial Theories of firm.
5. Define partnership. Explain the features, advantages and disadvantages of partnership.
6. From the following Balance sheet of Excellency Limited, calculate Debt-Equity Ratio.
Liabilities
Amount
Rs.
Assets Amount Rs.
Equity share capital 600000 Land and Building 1200000
Preference share capital 500000 Plant and Machinery 300000
15% debentures 800000 Sundry debtors 250000
Term loans 100000 Stock 150000
Secured loans 50000 Cash at Bank 100000
Short term loans 150000 Loans and advances 150000
Public deposits 200000 Preliminary expenses 50000
Share premium 20000 Discount on issue of shares 10000
Sundry creditors 80000 Loss on issue of debentures 45000
Reserve and Surplus 60000 P/L A/c- Accumulated up to
last year 450000
Less profit 55000
395000
Provision for taxation 50000
Capital reserve 40000
26,50,000 26,50,000
1 of 2
R10
SET - 2
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
7. Define capital budgeting. What are the different methods used for calculating capital
budgeting?
8. From the following balance sheets of X Ltd. On 31 December, 2012 and 2013, you are required
to prepare:
a) A schedule changes in working capital
b) A funds flow statement
Liabilities 2012 (Rs) 2013 (Rs) Assets 2012 (Rs) 2013 (Rs)
Share Capital 100000 100000 Goodwill 12000 12000
General reserve 14000 18000 Building 40000 36000
Profit & Loss A/C 11000 8000 Plant 37000 36000
Sundry Creditors 10000 7400 Investments 10000 11000
Bills Payable 4200 1800 Stock 30000 23400
Provision for Taxation 16000 20000 Bills Receivable 2000 3200
Provision for Doubtful 400 600 Debtors 18000 19000
Cash/bank 6600 15200
Total 155600 155800 155600 155800
The following additional information has also been given:
i) Depreciation charged on plant was Rs4000 and on Building Rs 4000.
ii) Interim dividend of Rs 8000 was paid during the year 2013.
2 of 2
R10
SET - 2
FirstRanker.com - FirstRanker's Choice
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
II B. Tech II Semester Regular Examinations August - 2014
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to CE, ME)
Time: 3 hours Max. Marks: 75
Answer any FIVE Questions
All Questions carry Equal Marks
~~~~~~~~~~~~~~~~~~~~~~~~
1. Define Managerial Economics. Explain its characteristics and importance.
2. Define price elasticity of demand. What are the different methods used to measure the price
elasticity?
3. Define MRTS. Explain Cobb-Douglas Production function.
4. What do you mean by a market? What are the concepts considered for dividing the markets?
What are the features of Perfect competition?
5. Define business cycle. What are its phases and features?
6. Calculate the net present value of two projects and suggest which of the two projects should be
accepted assuming a discount rate of 10%.
Project A Project B
Initial Investment Rs. 30000 Rs.50000
Estimated life 5 years 5 Years
Scrap Value Rs.2000 Rs.4000
Annual Cash inflows after tax and depreciation
Years 1 2 3 4 5
Project A 10000 15000 8000 6000 4000
Project B 40000 30000 10000 5000 4000
1 of 2
R10
SET - 1
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
7. Define ratio. Explain different ratios used to analyse the performance of the organization.
8. The following Trial balance was extracted from the books of XYZ Ltd., on March 31, 2013.
Prepare a Trading account and Profit and loss account for the year ended March 31, 2013 and a
Balance sheet as on that date.
Closing stock was valued at Rs.9000
Ledger Account Amount
Debit Rs. Credit Rs.
Opening Stock 10000
Purchases and sales 20000 40000
Returns 2000 1000
Discount 1000 2000
Capital and Drawings 5000 65000
Cash and bank Overdraft 7000 12000
Debtors and Creditors 19000 12000
Carriage 3000
Freight 4000
Salaries 6000
Stationary 4000
Land and Building 35000
Plant and Machinery 15000
Fixtures and Fittings 5000
Bills Receivable & Payable 6000 4000
General Reserve 6000
Total 1,42,000 1,42,000
2 of 2
R10
SET - 1
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
II B. Tech II Semester Regular Examinations August - 2014
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to CE, ME)
Time: 3 hours Max. Marks: 75
Answer any FIVE Questions
All Questions carry Equal Marks
~~~~~~~~~~~~~~~~~~~~~~~~
1. How basic Managerial Economics is different from Economics? Explain its relation with other
subjects.
2. Define Elasticity of demand. Explain different types of elasticity of demand and its
significance.
3. What are Law of variable proportions and Law of returns to scale? What are Isocosts and
Isoquants?
4. Explain any two Managerial Theories of firm.
5. Define partnership. Explain the features, advantages and disadvantages of partnership.
6. From the following Balance sheet of Excellency Limited, calculate Debt-Equity Ratio.
Liabilities
Amount
Rs.
Assets Amount Rs.
Equity share capital 600000 Land and Building 1200000
Preference share capital 500000 Plant and Machinery 300000
15% debentures 800000 Sundry debtors 250000
Term loans 100000 Stock 150000
Secured loans 50000 Cash at Bank 100000
Short term loans 150000 Loans and advances 150000
Public deposits 200000 Preliminary expenses 50000
Share premium 20000 Discount on issue of shares 10000
Sundry creditors 80000 Loss on issue of debentures 45000
Reserve and Surplus 60000 P/L A/c- Accumulated up to
last year 450000
Less profit 55000
395000
Provision for taxation 50000
Capital reserve 40000
26,50,000 26,50,000
1 of 2
R10
SET - 2
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
7. Define capital budgeting. What are the different methods used for calculating capital
budgeting?
8. From the following balance sheets of X Ltd. On 31 December, 2012 and 2013, you are required
to prepare:
a) A schedule changes in working capital
b) A funds flow statement
Liabilities 2012 (Rs) 2013 (Rs) Assets 2012 (Rs) 2013 (Rs)
Share Capital 100000 100000 Goodwill 12000 12000
General reserve 14000 18000 Building 40000 36000
Profit & Loss A/C 11000 8000 Plant 37000 36000
Sundry Creditors 10000 7400 Investments 10000 11000
Bills Payable 4200 1800 Stock 30000 23400
Provision for Taxation 16000 20000 Bills Receivable 2000 3200
Provision for Doubtful 400 600 Debtors 18000 19000
Cash/bank 6600 15200
Total 155600 155800 155600 155800
The following additional information has also been given:
i) Depreciation charged on plant was Rs4000 and on Building Rs 4000.
ii) Interim dividend of Rs 8000 was paid during the year 2013.
2 of 2
R10
SET - 2
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
II B. Tech II Semester Regular Examinations August - 2014
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to CE, ME)
Time: 3 hours Max. Marks: 75
Answer any FIVE Questions
All Questions carry Equal Marks
~~~~~~~~~~~~~~~~~~~~~~~~
1. Explain about different economic tools used in Managerial Economics. What are demand
distinctions?
2. Why you have to forecast demand? Explain different methods for forecasting demand.
3. Define costs. Explain different cost concepts.
4. Explain Price-output determination under Monopolistic Competition.
5. What are the differences between Public and private enterprises? Explain different types of
public enterprises.
1 of 2
R10
SET - 3
FirstRanker.com - FirstRanker's Choice
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
II B. Tech II Semester Regular Examinations August - 2014
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to CE, ME)
Time: 3 hours Max. Marks: 75
Answer any FIVE Questions
All Questions carry Equal Marks
~~~~~~~~~~~~~~~~~~~~~~~~
1. Define Managerial Economics. Explain its characteristics and importance.
2. Define price elasticity of demand. What are the different methods used to measure the price
elasticity?
3. Define MRTS. Explain Cobb-Douglas Production function.
4. What do you mean by a market? What are the concepts considered for dividing the markets?
What are the features of Perfect competition?
5. Define business cycle. What are its phases and features?
6. Calculate the net present value of two projects and suggest which of the two projects should be
accepted assuming a discount rate of 10%.
Project A Project B
Initial Investment Rs. 30000 Rs.50000
Estimated life 5 years 5 Years
Scrap Value Rs.2000 Rs.4000
Annual Cash inflows after tax and depreciation
Years 1 2 3 4 5
Project A 10000 15000 8000 6000 4000
Project B 40000 30000 10000 5000 4000
1 of 2
R10
SET - 1
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
7. Define ratio. Explain different ratios used to analyse the performance of the organization.
8. The following Trial balance was extracted from the books of XYZ Ltd., on March 31, 2013.
Prepare a Trading account and Profit and loss account for the year ended March 31, 2013 and a
Balance sheet as on that date.
Closing stock was valued at Rs.9000
Ledger Account Amount
Debit Rs. Credit Rs.
Opening Stock 10000
Purchases and sales 20000 40000
Returns 2000 1000
Discount 1000 2000
Capital and Drawings 5000 65000
Cash and bank Overdraft 7000 12000
Debtors and Creditors 19000 12000
Carriage 3000
Freight 4000
Salaries 6000
Stationary 4000
Land and Building 35000
Plant and Machinery 15000
Fixtures and Fittings 5000
Bills Receivable & Payable 6000 4000
General Reserve 6000
Total 1,42,000 1,42,000
2 of 2
R10
SET - 1
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
II B. Tech II Semester Regular Examinations August - 2014
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to CE, ME)
Time: 3 hours Max. Marks: 75
Answer any FIVE Questions
All Questions carry Equal Marks
~~~~~~~~~~~~~~~~~~~~~~~~
1. How basic Managerial Economics is different from Economics? Explain its relation with other
subjects.
2. Define Elasticity of demand. Explain different types of elasticity of demand and its
significance.
3. What are Law of variable proportions and Law of returns to scale? What are Isocosts and
Isoquants?
4. Explain any two Managerial Theories of firm.
5. Define partnership. Explain the features, advantages and disadvantages of partnership.
6. From the following Balance sheet of Excellency Limited, calculate Debt-Equity Ratio.
Liabilities
Amount
Rs.
Assets Amount Rs.
Equity share capital 600000 Land and Building 1200000
Preference share capital 500000 Plant and Machinery 300000
15% debentures 800000 Sundry debtors 250000
Term loans 100000 Stock 150000
Secured loans 50000 Cash at Bank 100000
Short term loans 150000 Loans and advances 150000
Public deposits 200000 Preliminary expenses 50000
Share premium 20000 Discount on issue of shares 10000
Sundry creditors 80000 Loss on issue of debentures 45000
Reserve and Surplus 60000 P/L A/c- Accumulated up to
last year 450000
Less profit 55000
395000
Provision for taxation 50000
Capital reserve 40000
26,50,000 26,50,000
1 of 2
R10
SET - 2
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
7. Define capital budgeting. What are the different methods used for calculating capital
budgeting?
8. From the following balance sheets of X Ltd. On 31 December, 2012 and 2013, you are required
to prepare:
a) A schedule changes in working capital
b) A funds flow statement
Liabilities 2012 (Rs) 2013 (Rs) Assets 2012 (Rs) 2013 (Rs)
Share Capital 100000 100000 Goodwill 12000 12000
General reserve 14000 18000 Building 40000 36000
Profit & Loss A/C 11000 8000 Plant 37000 36000
Sundry Creditors 10000 7400 Investments 10000 11000
Bills Payable 4200 1800 Stock 30000 23400
Provision for Taxation 16000 20000 Bills Receivable 2000 3200
Provision for Doubtful 400 600 Debtors 18000 19000
Cash/bank 6600 15200
Total 155600 155800 155600 155800
The following additional information has also been given:
i) Depreciation charged on plant was Rs4000 and on Building Rs 4000.
ii) Interim dividend of Rs 8000 was paid during the year 2013.
2 of 2
R10
SET - 2
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
II B. Tech II Semester Regular Examinations August - 2014
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to CE, ME)
Time: 3 hours Max. Marks: 75
Answer any FIVE Questions
All Questions carry Equal Marks
~~~~~~~~~~~~~~~~~~~~~~~~
1. Explain about different economic tools used in Managerial Economics. What are demand
distinctions?
2. Why you have to forecast demand? Explain different methods for forecasting demand.
3. Define costs. Explain different cost concepts.
4. Explain Price-output determination under Monopolistic Competition.
5. What are the differences between Public and private enterprises? Explain different types of
public enterprises.
1 of 2
R10
SET - 3
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
6. Prepare a Trading and Profit and loss account and balance sheet from the following trail
balance.
Particulars Debit (Rs.) Credit (Rs.)
Capital 100000
Machinery 30000
Stock 16000
Wages 50000
Carriage inwards 500
Salaries 5000
Factory rent 2400
Repairs 400
Fuel and power 2500
Buildings 40000
Sundry debtors 20000
Sales 203600
Purchases 122000
Creditors 12500
Returns outwards 2000
Returns inwards 3600
Drawings 2000
Discounts allowed 750
Discounts received 250
Office expenses 1000
Manufacturing expenses 600
Bills payable 8500
Bills receivable 5000
Cash in hand 2400
Cash at bank 15400
Office rent 1800
Total 326800 326800
7. What is capital budgeting? Explain its need. How it is different from working capital?
8. Interpret the performance of the company from the following data:
Ratio Actual Standard
Current ratio 6 2
Quick ratio 3 1
Fixed assets t proprietor?s funds 3 times 6 times
Debt collection period 40 days 60 days
Gross profit ratio 20% 30%
Net profit ratio 9% 13%
Stock turnover ratio 8 times 13 times
2 of 2
R10
SET - 3
FirstRanker.com - FirstRanker's Choice
FirstRanker.com
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Code No: R22013
II B. Tech II Semester Regular Examinations August - 2014
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to CE, ME)
Time: 3 hours Max. Marks: 75
Answer any FIVE Questions
All Questions carry Equal Marks
~~~~~~~~~~~~~~~~~~~~~~~~
1. Define Managerial Economics. Explain its characteristics and importance.
2. Define price elasticity of demand. What are the different methods used to measure the price
elasticity?
3. Define MRTS. Explain Cobb-Douglas Production function.
4. What do you mean by a market? What are the concepts considered for dividing the markets?
What are the features of Perfect competition?
5. Define business cycle. What are its phases and features?
6. Calculate the net present value of two projects and suggest which of the two projects should be
accepted assuming a discount rate of 10%.
Project A Project B
Initial Investment Rs. 30000 Rs.50000
Estimated life 5 years 5 Years
Scrap Value Rs.2000 Rs.4000
Annual Cash inflows after tax and depreciation
Years 1 2 3 4 5
Project A 10000 15000 8000 6000 4000
Project B 40000 30000 10000 5000 4000
1 of 2
R10
SET - 1
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
7. Define ratio. Explain different ratios used to analyse the performance of the organization.
8. The following Trial balance was extracted from the books of XYZ Ltd., on March 31, 2013.
Prepare a Trading account and Profit and loss account for the year ended March 31, 2013 and a
Balance sheet as on that date.
Closing stock was valued at Rs.9000
Ledger Account Amount
Debit Rs. Credit Rs.
Opening Stock 10000
Purchases and sales 20000 40000
Returns 2000 1000
Discount 1000 2000
Capital and Drawings 5000 65000
Cash and bank Overdraft 7000 12000
Debtors and Creditors 19000 12000
Carriage 3000
Freight 4000
Salaries 6000
Stationary 4000
Land and Building 35000
Plant and Machinery 15000
Fixtures and Fittings 5000
Bills Receivable & Payable 6000 4000
General Reserve 6000
Total 1,42,000 1,42,000
2 of 2
R10
SET - 1
FirstRanker.com
|''|''|||''|'''|||'|
Code No: R22013
II B. Tech II Semester Regular Examinations August - 2014
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to CE, ME)
Time: 3 hours Max. Marks: 75
Answer any FIVE Questions
All Questions carry Equal Marks
~~~~~~~~~~~~~~~~~~~~~~~~
1. How basic Managerial Economics is different from Economics? Explain its relation with other
subjects.
2. Define Elasticity of demand. Explain different types of elasticity of demand and its
significance.
3. What are Law of variable proportions and Law of returns to scale? What are Isocosts and
Isoquants?
4. Explain any two Managerial Theories of firm.
5. Define partnership. Explain the features, advantages and disadvantages of partnership.
6. From the following Balance sheet of Excellency Limited, calculate Debt-Equity Ratio.
Liabilities
Amount
Rs.
Assets Amount Rs.
Equity share capital 600000 Land and Building 1200000
Preference share capital 500000 Plant and Machinery 300000
15% debentures 800000 Sundry debtors 250000
Term loans 100000 Stock 150000
Secured loans 50000 Cash at Bank 100000
Short term loans 150000 Loans and advances 150000
Public deposits 200000 Preliminary expenses 50000
Share premium 20000 Discount on issue of shares 10000
Sundry creditors 80000 Loss on issue of debentures 45000
Reserve and Surplus 60000 P/L A/c- Accumulated up to
last year 450000
Less profit 55000
395000
Provision for taxation 50000
Capital reserve 40000
26,50,000 26,50,000
1 of 2
R10
SET - 2
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Code No: R22013
7. Define capital budgeting. What are the different methods used for calculating capital
budgeting?
8. From the following balance sheets of X Ltd. On 31 December, 2012 and 2013, you are required
to prepare:
a) A schedule changes in working capital
b) A funds flow statement
Liabilities 2012 (Rs) 2013 (Rs) Assets 2012 (Rs) 2013 (Rs)
Share Capital 100000 100000 Goodwill 12000 12000
General reserve 14000 18000 Building 40000 36000
Profit & Loss A/C 11000 8000 Plant 37000 36000
Sundry Creditors 10000 7400 Investments 10000 11000
Bills Payable 4200 1800 Stock 30000 23400
Provision for Taxation 16000 20000 Bills Receivable 2000 3200
Provision for Doubtful 400 600 Debtors 18000 19000
Cash/bank 6600 15200
Total 155600 155800 155600 155800
The following additional information has also been given:
i) Depreciation charged on plant was Rs4000 and on Building Rs 4000.
ii) Interim dividend of Rs 8000 was paid during the year 2013.
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Code No: R22013
II B. Tech II Semester Regular Examinations August - 2014
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to CE, ME)
Time: 3 hours Max. Marks: 75
Answer any FIVE Questions
All Questions carry Equal Marks
~~~~~~~~~~~~~~~~~~~~~~~~
1. Explain about different economic tools used in Managerial Economics. What are demand
distinctions?
2. Why you have to forecast demand? Explain different methods for forecasting demand.
3. Define costs. Explain different cost concepts.
4. Explain Price-output determination under Monopolistic Competition.
5. What are the differences between Public and private enterprises? Explain different types of
public enterprises.
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Code No: R22013
6. Prepare a Trading and Profit and loss account and balance sheet from the following trail
balance.
Particulars Debit (Rs.) Credit (Rs.)
Capital 100000
Machinery 30000
Stock 16000
Wages 50000
Carriage inwards 500
Salaries 5000
Factory rent 2400
Repairs 400
Fuel and power 2500
Buildings 40000
Sundry debtors 20000
Sales 203600
Purchases 122000
Creditors 12500
Returns outwards 2000
Returns inwards 3600
Drawings 2000
Discounts allowed 750
Discounts received 250
Office expenses 1000
Manufacturing expenses 600
Bills payable 8500
Bills receivable 5000
Cash in hand 2400
Cash at bank 15400
Office rent 1800
Total 326800 326800
7. What is capital budgeting? Explain its need. How it is different from working capital?
8. Interpret the performance of the company from the following data:
Ratio Actual Standard
Current ratio 6 2
Quick ratio 3 1
Fixed assets t proprietor?s funds 3 times 6 times
Debt collection period 40 days 60 days
Gross profit ratio 20% 30%
Net profit ratio 9% 13%
Stock turnover ratio 8 times 13 times
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Code No: R22013
II B. Tech II Semester Regular Examinations August - 2014
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Com. to CE, ME)
Time: 3 hours Max. Marks: 75
Answer any FIVE Questions
All Questions carry Equal Marks
~~~~~~~~~~~~~~~~~~~~~~~~
1. Define Law of Demand. Explain determinants of demand and exceptions of law of Demand.
2. ?New product does not have past data to forecast demand?. Will you support this this statement.
Illustrate.
3. What is BEP? Explain BEP curve. Why an organisation has to achieve BEP?
4. Explain different models of pricing.
5. Explain the features, advantages and disadvantages of Joint Stock Company.
6. Write a short note on
a) Double entry book keeping b) Ledger c) Journal
7. From the following balance sheet calculate current ratio, quick ration, Debt-equity ratio and
interpret the results:
Liabilities Rs. Assets Rs.
Equity share capital 1500 Plant and machinery 975
Debentures 400 Stock 550
Creditors 200 Debtors 550
Outstanding expenses 100 Cash in hand 375
Profit and loss account 100 Prepaid expenses 50
Bank loan 200
Total 2500 2500
8. A business needs a new machine and has to make a choice between two machines A and B.
From the following data suggest which machine is best by using Payback period, ARR and
NPV.
Machine A Machine B
Initial cost 40000 55000
Net cash flow
1 10000 14000
2 14000 16000
3 12000 15000
4 9000 10000
5 7000 9000
At the end of fifth year the machine will have no value and will be scrapped. To finance the
project the business can borrow money at 10% per annum.
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This post was last modified on 03 December 2019