jntu previous year question paper MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS for 2nd year first semester CE and MMT department

jntu previous year question paper MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS  for 2nd year first semester Mechanical Engineering,Electronics and Communication

Engineering,Computer Science Engineering,Information

Technology,Electronics and Telematics,Computer Science and Systems

Engineering,Electronics and Computer Engineering,Production

Engineering,Instrumentation and Control Engineering and Automobile

Engineering

jntu previous year question paper MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS  for 2nd year first semester Mechanical Engineering,Electronics and Communication

Engineering,Computer Science Engineering,Information

Technology,Electronics and Telematics,Computer Science and Systems

Engineering,Electronics and Computer Engineering,Production

Engineering,Instrumentation and Control Engineering and Automobile

Engineering

III B.Tech I Semester Regular Examinations, November 2007

MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS

(Common to Mechanical Engineering,Electronics and Communication

Engineering,Computer Science Engineering,Information

Technology,Electronics and Telematics,Computer Science and Systems

Engineering,Electronics and Computer Engineering,Production

Engineering,Instrumentation and Control Engineering and Automobile

Engineering)

Time: 3 hours Max Marks: 80

Answer any FIVE Questions

All Questions carry equal marks

⋆ ⋆ ⋆ ⋆ ⋆

1. Explain the relationship of Managerial Economics with other disciplines. [16]
2. What are the needs for demand forecasting. Explain the various steps involved in
demand forecasting. [16]
3. (a) Distinguish between the following:
i. Average cost and Marginal cost
ii. Explicit cost and implicit cost
iii. Short run Average cost and Long run Average cost
iv. Variable cost and semi variable cost [4 × 2]
(b) Diagrammatically represent the relationship between Average Fixed Cost, Av-
erage variable cost, Unit cost and Marginal cost. [8]
4. (a) Explain in detail, the important features of perfect competition.
(b) How can a competitor attain equilibrium position under conditions of perfect
competition? [8+8]
5. What are the differences between a partnership business and company form of
organization? [16]
6. Write short notes on the following: [4 ×4]
(a) Cumulative preference shares
(b) Customer advances
(c) Equity Shares
(d) Fixed capital.
7. Explain the following adjustments and illustrate suitably with assumed data. [16]
(a) Closing stock
(b) outstanding expenses
(c) Prepaid Income
1 of 2
Code No: R05310301 Set No. 1
(d) Bad debts.
8. (a) What are the parties that make use of financial statements for their decision
making?
(b) How do they apply the same? Elaborate. [8+8]

III B.Tech I Semester Regular Examinations, November 2007

MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS

(Common to Mechanical Engineering,Electronics and Communication

Engineering,Computer Science Engineering,Information

Technology,Electronics and Telematics,Computer Science and Systems

Engineering,Electronics and Computer Engineering,Production

Engineering,Instrumentation and Control Engineering and Automobile

Engineering)

Time: 3 hours Max Marks: 80

Answer any FIVE Questions

All Questions carry equal marks

⋆ ⋆ ⋆ ⋆ ⋆

1. Define ‘Demand’ and explain the factors that influence the demand of product.
[16]
2. What are the needs for demand forecasting. Explain the various steps involved in
demand forecasting. [16]
3. (a) “To reach Breach even position means to reach zero point” In the light of
the above statement explain how output, cost and revenue relationship can be
established.
(b) What are its limitations?
(c) Use suitable diagrams. [8+4+4]
4. (a) Explain in detail, the important features of perfect competition.
(b) How can a competitor attain equilibrium position under conditions of perfect
competition? [8+8]
5. Briefly discuss about the different types of business organizations. [16]
6. Give a comparative description of various methods of ranking investment proposals
by using assumed data. [16]


7. Explain the following concepts and illustrate their treatment with imaginary data.
[16]
(a) Depreciation
(b) Prepaid expenses
(c) Reserve for bad and doubtful debts
(d) Income received in advance.
8. (a) From the following information, calculate [16]
i. Debt Equity ratio
ii. Current ratio
1 of 2
Code No: R05310301 Set No. 2
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

III B.Tech I Semester Regular Examinations, November 2007

MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS

(Common to Mechanical Engineering,Electronics and Communication

Engineering,Computer Science Engineering,Information

Technology,Electronics and Telematics,Computer Science and Systems

Engineering,Electronics and Computer Engineering,Production

Engineering,Instrumentation and Control Engineering and Automobile

Engineering)

Time: 3 hours Max Marks: 80

Answer any FIVE Questions

All Questions carry equal marks

⋆ ⋆ ⋆ ⋆ ⋆

1. Explain the role of a Managerial Economist in a Business firm. [16]
2. What are the needs for demand forecasting. Explain the various steps involved in
demand forecasting. [16]
3. Explain the following concepts and point out their relevance in managerial decisions.
[16]
(a) Opportunity cost
(b) Marginal cost
(c) Contribution margin
(d) Margin of safety
4. ‘A competitor under conditions of perfect competition is only price taker and quan-
tity adjustor’ - In the light of the above statement, discuss clearly the important
features of perfect competition and how price output decisions can be taken. [16]
5. Define partnership business and discuss the merits and limitations of partnership.
[16]
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 would you choose under NPV method? [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. Compute the following ratios.
(a) Calculate Earnings Per share
Rs.
Net profit before preferential dividend 1,15,000
Equity share capital (40,000 shares of Rs.100 each) 4,00,000
121/2 % preference share capital 2,00,000
1 of 2
Code No: R05310301 Set No. 3
(b) Calculate Debtor Turnover ratio
Total sales for the year Rs.1,75,000
Cash sales 25% of total sales
Sales returns out of credit sales Rs.10,000
Sundry Debtors Opening balance Rs. 8,000
Sundry Debtors - Closing balance Rs.12,000
(c) Calculate interest coverage ratio
Rs.
Net profit after deducting Interest and Tax 6,00,000
12% Debentures of the face value of 15,00,000
Provision for taxation 1,20,000
(d) A company has current ratio of 3:1 and Quick ratio of 1:2. If the Working
Capital is Rs. 1,80,000, calculate Current liabilities and Stock. [4+4+4+4]

III B.Tech I Semester Regular Examinations, November 2007

MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS

(Common to Mechanical Engineering,Electronics and Communication

Engineering,Computer Science Engineering,Information

Technology,Electronics and Telematics,Computer Science and Systems

Engineering,Electronics and Computer Engineering,Production

Engineering,Instrumentation and Control Engineering and Automobile

Engineering)

Time: 3 hours Max Marks: 80

Answer any FIVE Questions

All Questions carry equal marks

⋆ ⋆ ⋆ ⋆ ⋆

1. Define Managerial Economics. Explain its nature and scope. [16]
2. What are the needs for demand forecasting. Explain the various steps involved in
demand forecasting. [16]
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]
4. (a) Explain in detail, the important features of perfect competition.
(b) How can a competitor attain equilibrium position under conditions of perfect
competition? [8+8]
5. “In the changing business environment the public sector enterprises should follow
the principles of business” Is it true? [16]
6. Write short notes on the following: [4×4]
(a) Public deposits
(b) Time value of money
(c) Circulating capital
(d) Investment evaluation.
7. Explain the following adjustments and illustrate suitably with assumed data. [16]
(a) Closing stock
(b) outstanding expenses
(c) Prepaid Income
(d) Bad debts.
8. (a) From the following information, calculate [16]
i. Debt Equity ratio
1 of 2
Code No: R05310301 Set No. 4
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