15A52301 Managerial Economics & Financial Analysis
15A52301 Managerial Economics & Financial Analysis
PART – B
(Answer all five units, 5 X 10 = 50 Marks)
UNIT – I
2 Define managerial economics and explain its nature and scope.
OR
3 Define law of demand and explain exceptions to the law of demand.
UNIT – II
4 The sales turnover and profit during two years were as follows:
Year Sales Profit
2007 1,50,000 20,000
2008 1,70,000 25,000
OR
5 State the law of proportions. And explain with the help of graph.
UNIT – III
6 Discuss pricing objectives.
OR
7 Explain the advantages and disadvantages of sole trader form of organization.
UNIT – IV
8 Explain briefly capital budget techniques.
OR
9 A company is considering two mutually exclusive projects. The following information is available related
to the two projects.
Project A Project B
Initial investment Rs.5,00,000 Rs.5,00,000
CFAT at the end of year 1 50,000 3,00,000
2 1,00,000 2,50,000
3 2,00,000 2,00,000
4 2,50,000 1,00,000
5 3,00,000 50,000
If the firm’s minimum expected rate of return is 10%, advise the company which project has to be
accepted.
Contd. in page 2
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Code: 15A52301 R15
UNIT – V
10 Journalize the following transactions:
2013
April, 1 Rajesh stars business with cash 20,000
April, 2 He buys goods for cash 15,000
April, 4 He buys goods from Malhotra on credit 6,000
April, 5 Furniture is purchased for cash 1,000
April, 9 Cash sales made 1,500
April, 11 Goods sold on credit to Satya Dev 4,000
April, 16 Payment made to Malhotra 6,000
April, 19 Cash sales 4,300
April, 21 Purchases of stationery for cash 20
April, 25 Sales on credit to Yusuf 1,770
April, 30 Rent for the month paid in cash 500.
OR
11 Calculate liquidity ratio from the following balance sheet a company compute current ratio and quick
ratio, absolute quick ratio. Also interpret the ratios.
Land and buildings 50000
Plant and machinery 100000
Furniture and fixtures 25000
Closing stock 25000
Sundry debtors 12500
Wages prepaid 2500
Sundry creditors 8000
Rent outstanding 2000
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