JNTU question papers
JNTU II B.Tech I Semester Regular Examinations, November 2008
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
( Common to Computer Science & Engineering, Information Technology
and Computer Science & Systems Engineering)
1. Discuss about the nature and scope of the Managerial Economics.
2. Define elasticity of demand and analyse the importance of the elasticity of demand.
3. What is Break even point? How is it computed?
4. What is a market? What are its essential characteristics? Discuss various types of
5. Explain the features of sole trader form of organization. Discuss the merits & demerits of sole trades form of organization.
6. Mohan & Co. is considering the purchase of machine. Two machines X and Y each
casting Rs.50,000 are available. Earnings after taxes are expected to be as under:
Year Machine ’X’ (Rs.) Machine ’Y’ (Rs.)
1 15000 5000
2 20000 15000
3 25000 20000
4 15000 30000
5 10000 20000
Estimate the two alternatives according to:
(a) Payback method, and
(b) NPV method a discount rate of 10% is to be used.
7. Journalise the following transactions in the books of Raj Shekhar:
Jan.1 Bought goods from Rao for 500
Jan.2 Sold goods for cash 150
Jan.5 Sold goods to Murthy 300
Jan.12 Bought goods for cash 750
Jan.18 Bought furniture for cash 200
Jan.20 Bought furniture for cash 250
Jan.24 Received from Murthy on account 175
Jan.28 Paid Rao on account 225
Jan.30 Paid salaries 150
Jan.31 Paid landlord rent 45
8. From the following information find out :
(a) Gross Profit Raito
(b) Operating Profit Ratio
(c) Net Profit Raio.
Less: Cost of Goods Sold :
Raw material consumed 22,00,000
Other production expenses 8,00,000 42,00,000
Less : Administration Expenses :
Selling Expenses 50,000
Distribution Expenses 1,00,000
Administrative Expenses 3,00,000
Loss on Sale of Fixed assets 18,000
Loss on Sale of Investments 10,000
Interests (on long-term debts) 1,30,000
Provision for taxation 2,60,000
(Inclusive of advance tax paid) 8,68,000
Net profit 5,32,000.