JNTU Kakinada B-Tech 3-1 RT31022 I MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS R13 April 2018 Question Paper

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Code No: RT31022
III B. Tech I Semester Supplementary Examinations, May – 2018
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS (Common to Electrical and Electronics Engineering, Automobile Engineering and Mining
Engineering)Time: 3 hours Max. Marks: 70
Note: 1. Question Paper consists of two parts (Part-A and Part-B) 2. Answering the question in Part-A is compulsory
3. Answer any THREE Questions from Part-B
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PART ?A
1 a) Explain about Law of Demand. [3M]
b) What are Isoquants. [4M]
c) What do you mean by Opportunity Cost? [4M]
d) Explain about Market Skimming pricing. [3M]
e) What do you mean by Liquidity ratios? [4M]
f) Explain the meaning of capitalization. [4M]
PART -B
2 a) Define managerial economics. Explain the nature and scope of managerial
economics.
[8M]
b) What do you mean by elasticity of demand? Explain different types of elasticity of
demand.
[8M]
3 a) Explain the concept of ?law of variable proportions?. [8M]
b) Explain the significance of CVP analysis in managerial decision making.
[8M]
4 a) What do you mean by monopoly? Explain the features of monopoly. [8M]
b) Explain the price output determination under perfect competition.
[8M]
5 a) Explain the features of a joint stock company. [8M]
b) What do you mean by business cycle? Explain different phases of business cycle.
[8M]
6 a) Prepare Trading and Profit and Loss Account for the year ended 31
st
March 2013
and Balance sheet as at that date from the following trail Balance of India & Co.,

1 of 2

[8M]
R13
SET – 1
|”|”|||”|”’|||’|

Code No: RT31022
III B. Tech I Semester Supplementary Examinations, May – 2018
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS (Common to Electrical and Electronics Engineering, Automobile Engineering and Mining
Engineering)Time: 3 hours Max. Marks: 70
Note: 1. Question Paper consists of two parts (Part-A and Part-B) 2. Answering the question in Part-A is compulsory
3. Answer any THREE Questions from Part-B
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
PART ?A
1 a) Explain about Law of Demand. [3M]
b) What are Isoquants. [4M]
c) What do you mean by Opportunity Cost? [4M]
d) Explain about Market Skimming pricing. [3M]
e) What do you mean by Liquidity ratios? [4M]
f) Explain the meaning of capitalization. [4M]
PART -B
2 a) Define managerial economics. Explain the nature and scope of managerial
economics.
[8M]
b) What do you mean by elasticity of demand? Explain different types of elasticity of
demand.
[8M]
3 a) Explain the concept of ?law of variable proportions?. [8M]
b) Explain the significance of CVP analysis in managerial decision making.
[8M]
4 a) What do you mean by monopoly? Explain the features of monopoly. [8M]
b) Explain the price output determination under perfect competition.
[8M]
5 a) Explain the features of a joint stock company. [8M]
b) What do you mean by business cycle? Explain different phases of business cycle.
[8M]
6 a) Prepare Trading and Profit and Loss Account for the year ended 31
st
March 2013
and Balance sheet as at that date from the following trail Balance of India & Co.,

1 of 2

[8M]
R13
SET – 1
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Code No: RT31022
Dr. Balances Rs. Cr. Balances Rs.
Drawings
Goodwill
Land & Buildings
Plant & machinery
Loose tools
Bills receivables
Stock 1
st
april 2012
Purchases
Wages
Carriage outwards
Carriage inwards
Coal
Salaries
Rent, Rates & Taxes
Discount
Cash at bank
Cash in hand
Sundry debtors
Repairs
Printing & stationary
Bad debts
Advertisements
Sales returns
Furniture
General Expenses
45,000
80,000
60,000
40,000
3,000
3,000
40,000
2,51,000
20,000
500
1,000
5,800
35,000
2,800
1,500
25,000
400
45,000
1,800
500
1,200
3,500
2,000
11,200
5,250
___________
6,84,450
Capital
Bills payable
Creditors
Purchase returns
sales
1,60,000
33,800
70,000
2,650
4,18,000

_____________
6,84,450
Adjustments
i) Closing stock on 31.03.2013 was Rs.35,000
ii) Provide 5% on debtors against bad debts and 2% against discount on creditors
iii) Provide Rs.1,500 for wages iv) Advertisements prepaid Rs.500
v) Depreciate plant & machinery, Tools and furniture by 10% and Land &
Buildings by 5%.
b) Explain the significance of ratio analysis in evaluating the performance of
companies.
[8M]
7 a) Explain the need and significance of capital budgeting in managerial decision
making.
[8M]
b) A firm whose cost of capital is 10% is considering two mutually exclusive projects
X and Y, the details which are:
Particulars Project X Project Y
Investment(Rs)Cash inflows(years)Rs
1
2
3
4
5
70,000
10000
20000
30000
40000
50000
70,000
50000
30000
40000
10000
10000
Compute the net present value at 10% discount rate for the two projects.
[8M]
*****
2 of 2
R13
SET – 1