Mefa Feb08

campusexpress.co.in

Set No. 1

Code No: R05310301

.in

III B.Tech I Semester Supplimentary Examinations, February 2008 MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS ( Common to Mechanical Engineering, Electronics & Communication Engineering, Computer Science & Engineering, Information Technology, Electronics &Computer Engineering, Computer Science & Systems Engineering, Automobile Engineering, Production Engineering, Instrumentation & control Engineering,Electronics & Telematics Engineering) Time: 3 hours Max Marks: 80 Answer any FIVE Questions All Questions carry equal marks ⋆⋆⋆⋆⋆

.co

1. Managerial Economics is the application of Economic Theory to business management. Discuss. [16]

ss

2. (a) What do you understand by Elasticity of demand. How is it classified.

xp

re

(b) Determine price elasticity of demand given that the quantity demanded of a product is 1000 units when the price is Rs. 100 and when the price declines to Rs.90, demand increases to 1500 units. [8+8]

se

3. (a) Define and explain diminishing returns to variable factor and why does it happen? (b) Use suitable diagrams in support of your answer.

[10+6]

pu

4. (a) What are the principal differences between monopoly and perfect competition?

m

(b) Supplement your answer with appropriate diagrams in both the cases. [8+8]

ca

5. Evaluate the partnership form of business organization. How does it overcome the limitations of sole trading? [16] 6. What is the importance of capital budgeting? Explain the basic steps involved in evaluating capital budgeting proposals. [16] 7. The following trial balance belongs to Bala Krishna as on 31st December 2004.

1 of 2

http://www.campusexpress.co.in

campusexpress.co.in

Set No. 1

Code No: R05310301

Prepare a trading, profit and loss account and balance sheet.

.in

ss

Adjustments

Debit Rs. CreditRs. 1,65,625 2,56,650 4,250 2,120 40,200 30,720 26,720 20,625 1,20,500 35,000 10,500 5,750 7,500 9,500 4,500 10,000 1,10,930 4,30,545 4,30,545

.co

Purchases and Sales Sales returns and Purchase returns Sundry debtors & Creditors Bills receivable and Bills payable Opening stock Wages Fuel and power Postage and stationery Trade expenses Interest received Bad debts Drawings and capital

[16]

re

(a) Closing stock was valued at Rs.95,000

xp

(b) Wages were outstanding by Rs. 5,000

se

(c) Outstanding interest receivable Rs.500. 8. (a) From the following information, calculate

pu

i. Debt ? Equity ratio ii. Current ratio

ca

m

Rs. Rs. Debentures 1,40,000 Bank balance 30,000 Long term loans 70,000 Sundry Debtors 70,000 General reserve 40,000 Creditors 66,000 Bills payable 14,000 Share capital 1,20,000

(b) Calculate Interest Coverage ratio from the following information. Rs. Net profit after deducting interest and taxes 6,00,000 12% Debentures of the face value of 15,00,000 Amount provided towards taxation 1,20,000 ⋆⋆⋆⋆⋆

2 of 2

http://www.campusexpress.co.in

[16]

campusexpress.co.in

Set No. 2

Code No: R05310301

.in

III B.Tech I Semester Supplimentary Examinations, February 2008 MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS ( Common to Mechanical Engineering, Electronics & Communication Engineering, Computer Science & Engineering, Information Technology, Electronics &Computer Eng ineering, Computer Science & Systems Engineering, Automobile Engineering, Production Engineering, Instrumentation & control Engineering,Electronics & Telematics Engineering) Time: 3 hours Max Marks: 80 Answer any FIVE Questions All Questions carry equal marks ⋆⋆⋆⋆⋆

.co

1. Managerial Economics is the application of Economic Theory to business management. Discuss. [16]

ss

2. What are the needs for demand forecasting. Explain the various steps involved in demand forecasting. [16]

xp

re

3. If Selling Price Per Unit Rs.12, Variable Cost Per Unit Rs.8, Fixed Cost Rs.40000 Find out (a) Break Even sales units and value

se

(b) profit when sales are Rs.300000

[16]

pu

(c) Margin of Safety when sales are Rs.350000. 4. Write short notes on the following:

m

(a) Product differentiation

ca

(b) Market skimming (c) Super normal profits (d) shut down price.

[4×4]

5. Explain the features of sole trader form of organization. Discuss the merits and demerits of sole trader form of organization. [16] 6. Are there any considerations other than profitability to be made in managerial decisions about investment proposals? Explain them. [16] 7. The trial balance of Bharat is given below. Prepare the Trading and Profit & Loss A/c for the year ending 31st December, 2005 and Balance sheet as on that date. [16]

1 of 2

http://www.campusexpress.co.in

campusexpress.co.in

Set No. 2

Code No: R05310301

Closing stock was valued at Rs.90,000.

.co

.in

Debit. Rs Credit. Rs. 10,550 1,19,400 38,300 62,000 59,360 43,750 2,56,590 3,56,430 95,300 12,880 930 18,970 14,370 4,870 12,590 79,630 43,990 6,15,090 6,15,090

ss

Drawings and Capital Plant & Machinery Sundry debtors and creditors Wages Purchases and Sales Opening stock Salaries Insurance Cash at bank Interest on loan Discounts allowed Furniture Loan payable Furniture

xp

i. Debt ? Equity ratio ii. Current ratio

re

8. (a) From the following information, calculate

ca

m

pu

se

Rs. Rs. Debentures 1,40,000 Bank balance 30,000 Long term loans 70,000 Sundry Debtors 70,000 General reserve 40,000 Creditors 66,000 Bills payable 14,000 Share capital 1,20,000

(b) Calculate Interest Coverage ratio from the following information. Rs. Net profit after deducting interest and taxes 6,00,000 12% Debentures of the face value of 15,00,000 Amount provided towards taxation 1,20,000 ⋆⋆⋆⋆⋆

2 of 2

http://www.campusexpress.co.in

[16]

campusexpress.co.in

Set No. 3

Code No: R05310301

.in

III B.Tech I Semester Supplimentary Examinations, February 2008 MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS ( Common to Mechanical Engineering, Electronics & Communication Engineering, Computer Science & Engineering, Information Technology, Electronics &Computer Eng ineering, Computer Science & Systems Engineering, Automobile Engineering, Production Engineering, Instrumentation & control Engineering,Electronics & Telematics Engineering) Time: 3 hours Max Marks: 80 Answer any FIVE Questions All Questions carry equal marks ⋆⋆⋆⋆⋆ [16]

.co

1. Managerial economics is a multi dimensional discipline ? Explain.

re

3. (a) With a neat diagram represent

ss

2. Explain Income Elasticity of demand and its significance in making business decisions. [16] [8]

xp

i. Angle of incidence ii. Margin of safety in sales volume

[8]

m

pu

P/V Ratio Break-Even Sales Volume Margin of Safety and Profit. Sales Rs.4000, Variable Cost Rs.2000, Fixed Cost Rs.1600

ca

i. ii. iii. iv.

se

(b) From the following figures you are required to calculate:

4. (a) Define Market and explain how markets are classified? (b) What are the important features in any market structure?

[12+4]

5. “Company form of organization is essential for the development of industrial sector in India” Support this statement with suitable Justifications. [16] 6. Explain the concept of capital budgeting and what is its practical utility?

[16]

7. The following are the particulars of Ledger Account balances taken from the books of Bhaskar for the year ending 31st March 2005. You are required to prepare the

1 of 2

http://www.campusexpress.co.in

campusexpress.co.in

Set No. 3

Code No: R05310301 Trading and profit and Loss A/c and Balance sheet.

Rs. 4,00,000 75,000 15,000 25,000 2,50,000

Rs. 7,00,000 50,000

25,000 8,000 2,75,000

.co

.in

40,000 60,000 37,000 35,000 65,000 15,000 5,000 78,000 58,000

re

ss

Bills receivable and Bills payable Debtors and Creditors Cash on hand Cash at bank Business premises Loans payable Opening stock Purchases and purchase returns Sales returns and sales Wages Salaries Rent, Taxes and Insurance Depreciation Furniture Advertisement Capital

[16]

xp

Adjustments:

1,00,000 11,58,000 11,58,000

se

(a) Closing stock was valued at Rs. 80,000 (b) Write off Bad Debts of Rs.5 ,000 out of sundry debtors

pu

(c) Prepaid insurance amounted Rs.1,000.

m

8. (a) From the following information, calculate

ca

i. Debt ? Equity ratio ii. Current ratio Rs. Rs. Debentures 1,40,000 Bank balance 30,000 Long term loans 70,000 Sundry Debtors 70,000 General reserve 40,000 Creditors 66,000 Bills payable 14,000 Share capital 1,20,000

(b) Calculate Interest Coverage ratio from the following information. Rs. Net profit after deducting interest and taxes 6,00,000 12% Debentures of the face value of 15,00,000 Amount provided towards taxation 1,20,000 ⋆⋆⋆⋆⋆ 2 of 2

http://www.campusexpress.co.in

[16]

campusexpress.co.in

Set No. 4

Code No: R05310301

.in

III B.Tech I Semester Supplimentary Examinations, February 2008 MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS ( Common to Mechanical Engineering, Electronics & Communication Engineering, Computer Science & Engineering, Information Technology, Electronics &Computer Eng ineering, Computer Science & Systems Engineering, Automobile Engineering, Production Engineering, Instrumentation & control Engineering,Electronics & Telematics Engineering) Time: 3 hours Max Marks: 80 Answer any FIVE Questions All Questions carry equal marks ⋆⋆⋆⋆⋆

.co

1. Write short notes on:

(b) Complementary goods and demand

re

(c) Substitution effect

ss

(a) Demand Function

[16]

xp

(d) Inferior goods

se

2. Explain Income Elasticity of demand and its significance in making business decisions. [16]

pu

3. “Break even analysis provides the management with a simplified framework for an organization which is thinking on a number of problems” ? Discuss. [16]

m

4. (a) What are the causes for the formulation of monopoly?

ca

(b) Discuss how the monopolist can formulate output and pricing decisions in the short run period? [8+8] 5. Explain the features of sole trader form of organization. Discuss the merits and demerits of sole trader form of organization. [16] 6. Explain different types of working capital.

[16]

7. Give a brief account on the important records of Accounting under Double entry system and discuss briefly the scope of each. [16] 8. (a) From the following information, calculate i. Debt ? Equity ratio ii. Current ratio

1 of 2

http://www.campusexpress.co.in

[16]

campusexpress.co.in

Set No. 4

Code No: R05310301

Rs. Rs. Debentures 1,40,000 Bank balance 30,000 Long term loans 70,000 Sundry Debtors 70,000 General reserve 40,000 Creditors 66,000 Bills payable 14,000 Share capital 1,20,000 (b) Calculate Interest Coverage ratio from the following information.

ca

m

pu

se

xp

re

ss

⋆⋆⋆⋆⋆

.co

.in

Rs. Net profit after deducting interest and taxes 6,00,000 12% Debentures of the face value of 15,00,000 Amount provided towards taxation 1,20,000

2 of 2

http://www.campusexpress.co.in