Set No. 1
Code No:
RR-310106
III B.Tech. I-Semester Regular Examinations, November-2004
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Common to Civil Engineering, Bio-Technology, Mechanical Engineering
and Metallurgy and Material Technology)
Time: 3 hours Max Marks: 80
Answer any FIVE Questions
All Questions carry equal marks
- - -
1. What is managerial economics? Explain its focus areas.
2. Why does the Law of Diminishing Returns operate? Explain with the help of a diagram.
3. When maximal cost (M C) Average cost (AC) change (a) at the same rate, (b) at a higher rate or (c) at a lower rate? Illustrate your answer through a diagram.
4. Explain how an individual firm attains equilibrium in the short run and in the long run under conditions of Perfect Competition.
5. Define a Joint-stock Company and explain its basic features.
6. What do you understand by working capital cycle and what is its importance?
7. a) What is Trial Balance? Why it is prepared?
b) From the following list of balances prepare a Trial Balance as on 30-6-2003
|
|
|
Rs. |
|
|
Rs. |
|
i. |
Opening stock |
1,800 |
xiii. |
Plant |
750 |
|
ii. |
Wages |
1,000 |
xiv. |
Machine Tools |
180 |
|
iii. |
sales |
12,000 |
xv. |
Lighting |
230 |
|
iv. |
bank loan |
440 |
xvi. |
Creditors |
800 |
|
v |
coal and coke |
300 |
xvii. |
Capital |
4,000 |
|
vi |
purchases |
7,500 |
xviii. |
Misc.receipts |
60 |
|
vii. |
repairs |
200 |
xix. |
Office salaries |
250 |
|
viii. |
carriage |
150 |
xx |
Office furniture |
60 |
|
ix. |
income tax |
150 |
xxi |
Patents |
100 |
|
x |
debtors |
2,000 |
xxii. |
Goodwill |
1,500 |
|
xi |
leasehold premises |
600 |
xxiii. |
Cash at bank |
510 |
|
xii. |
Cash in hand |
20 |
|
|
|
8. Explain and illustrate the types and significance of
a) Profitability ratios b) Operating Ratio.
###
Set No. 2
Code No:
RR-310106
III B.Tech. I-Semester Regular Examinations, November-2004
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Common to Civil Engineering, Bio-Technology, Mechanical Engineering
and Metallurgy and Material Technology)
Time: 3 hours Max Marks: 80
Answer any FIVE Questions
All Questions carry equal marks
- - -
1. Point out the importance of managerial economics in decision-making.
2. Explain the nature and uses of production function?
3. What cost concepts are mainly used for managerial decision-making? Illustrate.
4. How does a Monopoly firm attain equilibrium under different cost conditions?
5. Write short notes on (a) Sole Trader (b) Stationary Corporation.
6. a) Describe the institutions providing long term finances.
b) What are the different market situations in imperfect competition?
7. a) How do you know that given Trail balance is correct or not?
b) From the following Leger Account balances prepare a Trial Balance as on 31-12-2002.
|
|
|
Rs. |
|
|
Rs |
|
i. |
Opening Stock |
15,600 |
xvi. |
Insurance |
400 |
|
ii. |
Freehold premises |
30,000 |
xvii. |
Bad reserve |
300 |
|
iii |
Plant & Machinery |
9,000 |
xviii. |
Commission Received |
3,000 |
|
iv. |
Wages |
2,000 |
xix. |
Commission paid |
1,000 |
|
v. |
Sundry debtors |
12,000 |
xx |
Bad debts |
300 |
|
vi |
Carriages inwards |
180 |
xxi |
Office expenses |
1,500 |
|
vii |
Carriage outwards |
200 |
xxi |
Salaries |
2,000 |
|
viii |
Factory expenses |
1,600 |
xxiii. |
Traveling expenses |
200 |
|
ix. |
Royalty |
200 |
xxiv. |
Legal expenses |
200 |
|
x. |
Purchase of Machinery |
15,000 |
xxv |
Cash at bank |
840 |
|
xi. |
Office Rent |
1,400 |
xxvi. |
Cash in hand |
800 |
|
xii. |
Capital |
16,000 |
xxvii |
Loan taken |
6,000 |
|
xiii. |
Discount Allowed |
800 |
xxviii |
Office rent |
800 |
|
xiv. |
Discount received |
720 |
xxix |
Net sales |
66,000 |
|
xv. |
Sundry creditors |
4,000 |
|
|
|
;
8. Given the following information from the Kamal Plastics Limited, compute (a) Assets turnover (b) Return on Equity (c) Return on Assets (d) Net profit Ratio and comment of the results.
2001 2002
Net Sales 86,000 71,000
Profit after taxes 12,000 11,000
Total assets 49,000 41,000
Shareholder’s equity 27,000 21,000
###
Set No. 3
Code No:
RR-310106
III B.Tech. I-Semester Regular Examinations, November-2004
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Common to Civil Engineering, Bio-Technology, Mechanical Engineering
and Metallurgy and Material Technology)
Time: 3 hours Max Marks: 80
Answer any FIVE Questions
All Questions carry equal marks
- - -
1. What is meant by elasticity of demand? How do you measure it?
2. Explain and illustrate Laws of Returns.
3. The PV ratio of Matrix Books Ltd, is 40% and the margin of safety is 30%. You are required to work out the BEP and Net Profit, if the sales volume is Rs. 14,000.
4. Compare and contrast perfectly Competitive Firm and Monopoly Firm.
5. Explain the basic features of government company form of Public Enterprise.
6. What do you understand by Net Present value method of appraising long-term investment proposal? Explain with the help of an example of your choice.
7. Record the following transactions in the suitable form of cash book
|
2004 Jan 1 |
Started business with cash |
20,000 |
|
2 |
Paid for purchase of machinery from M/s. Ram and Co. |
3,000 |
|
3 |
Paid insurance premium |
200 |
|
5 |
Paid rent for the month of Dec’2003 |
500 |
|
8 |
Paid cash for purchase of goods |
3,000 |
|
10 |
Sold goods for cash |
4,000 |
|
12 |
Drew cash for personal use |
500 |
|
14 |
Paid Arun Rs.400 in full settlement of Rs.500 |
|
|
15 |
Received cash from Karuna Rs. 1000 in full settlement of Rs.1,050 |
|
Also prepare cash Account.
8.> Calculate the Gross profit Margin and Net operating margin and Operating ratio given the following information.
Sales Rs. 10,00,000
Cost of goods Rs. 6,00,000
Selling and administrative costs Rs. 2,00,000
Depreciation Rs. 1,00,000
Also Comment on the results
###
Set No. 4
Code No:
RR-310106
III B.Tech. I-Semester Regular Examinations, November-2004
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Common to Civil Engineering, Bio-Technology, Mechanical Engineering
and Metallurgy and Material Technology)
Time: 3 hours Max Marks: 80
Answer any FIVE Questions
All Questions carry equal marks
- - -
1. Define Elasticity of demand. Explain different types of price Elasticity of demand.
2. a) Explain how production function can be made use of to reduce cost of Production?
b) Explain Law of increasing returns? Also Illustrate.
3. A company reported the following results for two periods.
|
Period |
Sales |
Profit |
|
I |
Rs.20,00,000 |
Rs.2,00,000 |
|
II |
Rs.25,00,000 |
Rs.3,00,000 |
Ascertain the BEP, P V Ratio, Fixed Cost and margin of safety.
4. What is Price discrimination? Discuss the different ways of Price discrimination.
5. Define Joint Stock Company? Explain its advantages and disadvantages.
6. A company is considering two investment opportunities (A and B) that cost Rs.4,00,000 and Rs.3,00,000 respectively. The first project generates Rs. 1,00,000 a year for four years. The second generates Rs. 60,000, Rs.1,00,000, Rs.80,000 Rs. 90,000 and Rs.70,000 over a five year period . The company’s cost of capital is 8%. Which project will you choose under NPV method?
7. What is three column cash book? What is contra Entry? Illustrate.
8. Calculate (a) Net Sales to Fixed Assets (b) Net Sales to Inventory (c) Net Profit Ratios given the following and explain their significance in decision making.
Rs.
Net Sales 10,00,000
Fixed Assets 8,00,000
Inventory 2,20,000
Net profit after taxes 69,840
###