Jawaharlal Nehru Technological University Kakinada 2007 B.Tech Civil Engineering MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS - Question Paper

demand forecasting. [16]
3. discuss the subsequent 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, explain clearly the important
features of perfect competition and how price output decisions can be taken. [16]
5. describe partnership business and explain the merits and limitations of partnership.
[16]
6. A company is considering 2 investment opportunities (A and B) that cost Rs.
4,00,000 and Rs. 3,00,000 respectively. The 1st project generates Rs. 1,00,000/- a
year for 4 years. The 2nd generates Rs.60,000/-, Rs. 1,00,000/, Rs. 80,000/-
Rs, 90,000/- and Rs. 70,000 over a 5 year period. The company’s cost of capital
is 8%. Which project would you select under NPV method? [16]
7. provide a brief account on the important records of Accounting under Double entry
system and explain briefly the scope of every. [16]
8. calculate the subsequent ratios.
(a) compute 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
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Code No: R05310301 Set No. 3
(b) compute 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) compute 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, compute Current liabilities and Stock. [4+4+4+4]
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Code No: R05310301 Set No. 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: three hours Max Marks: 80
ans any 5 ques.
All ques. carry equal marks
? ? ? ? ?
1. describe Managerial Economics. discuss its nature and scope. [16]
2. elaborate the needs for demand forecasting. discuss the different steps involved in
demand forecasting. [16]
3. (a) describe and discuss diminishing returns to variable factor and why does it
happen?
(b) Use suitable diagrams in support of your ans. [10+6]
4. (a) discuss 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 valuation.
7. discuss the subsequent adjustments and illustrate suitably with presumed data. [16]
(a) Closing stock
(b) outstanding expenses
(c) Prepaid Income
(d) Bad debts.
8. (a) From the subsequent information, compute [16]
i. Debt Equity ratio
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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) compute Interest Coverage ratio from the subsequent info.
Rs.
Net profit after deducting interest and taxes 6,00,000
12% Debentures of the face value of 15,00,000
Amount given towards taxation 1,20,000
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Earning:   Approval pending.