6. A company is considering two investment opportunities (A and B) that cost Rs. 4,00,000 and Rs. 3,00,000 respectively.
Set No. 1
Code No: RR312401
in
III B.Tech I Semester Regular Examinations, November 2007 MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS (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]
3. Write short notes on the following: (a) Isoquants (c) Budget line
or
(b) Least cost combination of inputs
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2. What are the needs for demand forecasting. Explain the various steps involved in demand forecasting. [16]
(d) Marginal rate of Technical substitution.
[4+4+4+4]
4. (a) ‘Perfect competition is only an imaginary situation far from reality’ Do you agree with the above statement or not? Comment.
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(b) What is the role of time factor for price determination?
[10+6]
5. “In the changing business environment the public sector enterprises should follow the principles of business” Is it true? [16]
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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]
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8. State the significance of each of the following ratios and turnovers and explain how each one is calculated (a) Current ratio
(b) Debtor-Turnover ratio (c) P/E ratio and
(d) Earnings per share.
[16] ⋆⋆⋆⋆⋆
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Set No. 2
Code No: RR312401
1. Define Managerial Economics. Explain its nature and scope.
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III B.Tech I Semester Regular Examinations, November 2007 MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS (Automobile Engineering) Time: 3 hours Max Marks: 80 Answer any FIVE Questions All Questions carry equal marks ⋆⋆⋆⋆⋆ [16]
3. (a) Distinguish between the following:
Average cost and Marginal cost Explicit cost and implicit cost Short run Average cost and Long run Average cost Variable cost and semi variable cost
or
i. ii. iii. iv.
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2. What is meant by Elasticity of demand. What are the factors that determine the elasticity demand? [16]
[4 × 2]
(b) Diagrammatically represent the relationship between Average Fixed Cost, Average variable cost, Unit cost and Marginal cost. [8]
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4. (a) What are the principal differences between monopoly and perfect competition? (b) Supplement your answer with appropriate diagrams in both the cases. [8+8] 5. (a) What is the rationale of public sector enterprises in India? (b) State the features of Public sector enterprises in India? 6. Explain different types of working capital.
[8+8] [16]
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7. The following is the trial balance of Anand as on 31st March, 2006 with the help
1 of 2
Set No. 2
Code No: RR312401
of which prepare Trading, Profit & Loss A/c and the Balance Sheet.
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Cr.
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Dr. 3,170 40,675 680 10,480 4,730 22,500 3,600 5,245 14,500 5,240 5,760 80,000
98,780 500 71,000 6,300 20,000 1,96,580 1,96,580
or
Cash Purchases Sales returns Wages Fuel and power Salaries Sundry expenses Drawings Debtors Carriage Opening stock Land & buildings Sales Purchases returns Capital Creditors Bills payable
[16]
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Closing stock was valued at Rs.50,000.
8. With the following financial data, compute.
[16]
(a) Current ratio (b) Quick ratio
(c) Stock- Turnover ratio and
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(d) Gross profit ratio.
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Rs. Opening stock 1,00,000 Closing stock 2,00,000 Purchases 5,45,000 Wages 15,000 Administrative expenses 40,000 Selling & Distribution expenses 2,40,000 Sales 10,00,000 ⋆⋆⋆⋆⋆
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Rs. Cash on hand 3,00,000 Debtors 4,00,000 Sundry creditors 3,00,000 Bills payable 2,50,000 Bank credit 2,50,000
Set No. 3
Code No: RR312401
1. Define Managerial Economics. Explain its nature and scope.
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III B.Tech I Semester Regular Examinations, November 2007 MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS (Automobile Engineering) Time: 3 hours Max Marks: 80 Answer any FIVE Questions All Questions carry equal marks ⋆⋆⋆⋆⋆ [16]
3. (a) Define ‘Cost’. How are costs classified?
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2. What are the needs for demand forecasting. Explain the various steps involved in demand forecasting. [16]
(b) Explain any five important cost concepts useful for managerial decisions. [6+10]
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4. ‘A competitor under conditions of perfect competition is only price taker and quantity 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]
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5. “Company form of organization is essential for the development of industrial sector in India” Support this statement with suitable Justifications. [16] 6. Compare and contrast the NPV and ARR methods of evaluating investment proposals and illustrate. [16] 7. The following is the trial balance belongs to Akram as on 31st March, 2005. Prepare Trading, Profit & Loss Account and Balance Sheet. [16]
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Debit balances Drawings Opening stock Sales Returns Purchases Carriage Rent Salaries Debtors Printing charges Cash on hand Investments Discounts Business premises
Rs. 20,000 93,600 17,200 4,86,200 37,200 11,400 18,600 48,000 24,000 23,000 23,600 12,900 21,200 8,36,900
Credit balances Rs. Sales 5,79,200 Purchase returns 11,600 Creditors 29,600 Income from investments 500 Capital 2,16,000
Closing stock was valued at Rs.1,90,000. 1 of 2
8,36,900
Set No. 3
Code No: RR312401 8. (a) From the following information, calculate
[16]
i. Debt Equity ratio ii. Current ratio
in
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
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(b) Calculate Interest Coverage ratio from the following information.
or
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
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2 of 2
Set No. 4
Code No: RR312401
1. Explain the role of a Managerial Economist in a Business firm.
in
III B.Tech I Semester Regular Examinations, November 2007 MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS (Automobile Engineering) Time: 3 hours Max Marks: 80 Answer any FIVE Questions All Questions carry equal marks ⋆⋆⋆⋆⋆ [16]
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2. What are the various methods of demand forecasting. Evaluate various surveybased demand forecasting methods. [16] 3. (a) What do you understand by ‘Law of increasing Returns?’ What causes make increasing returns operate? [10] [3]
(c) Do diminishing returns apply only for agriculture or any other fields?
[3]
or
(b) When do you notice ‘constant returns’ arising?
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]
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5. “Company form of organization is essential for the development of industrial sector in India” Support this statement with suitable Justifications. [16] 6. Explain different types of working capital.
[16]
7. With the help of the following trial balance of Anandam prepare the trading and profit & loss A/c for the year ending 31st March 2004 and balance sheet. [16]
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Drawings and Capital Land & Buildings Plant and Machinery Opening stock Wages Salaries Rent and taxes Miscellaneous expenses Sundry debtors and creditors Bills receivable and payable Purchases Sales
Adjustments: 1 of 2
Debit Rs. CreditRs. 12,900 1,80,000 78,540 75,000 40,000 65,000 35,000 9,750 8,500 45,000 90,000 20,000 50,000 25,000 94,690 4,14,690 4,14,690
Set No. 4
Code No: RR312401 (a) Closing stock was valued at Rs.60,000 (b) Depreciate plant and machinery @ 10%.
(c) Create a Reserve for doubtful debts @ 2% on sundry debtors (d) Salaries were outstanding by Rs. 5,000.
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8. How are ratios classified for the purpose of financial analysis? With assumed data, illustrate any two types of ratios under each category? [16]
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or
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