Code No: R5220201 R5

II B.Tech II Semester(R05) Supplementary Examinations, December 2010

MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Common to Electrical & Electronics Engineering, Electronics & Instrumentation
Engineering, Bio-Medical Engineering, Electronics & Control Engineering, Bio Technology)
Time: 3 hours Max Marks: 80
Answer any FIVE Questions
All Questions carry equal marks
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1. State the Law of Demand. What are the various factors that determine the demand for a mobile
phone? [16]
2. What are the needs for demand forecasting. Explain the various steps involved in demand forecasting.
[16]
3. (a) Discuss the role and importance of cost analysis in managerial decisions.
(b) How does the average cost vary during short run and long run periods? [8+8]
4. (a) How can you distinguish between perfect competition and imperfect competition?
(b) How are business units under conditions of imperfect competition further subdivided?
(c) What is the role of time factor in determining price? [6+6+4]
5. “In the changing business environment the public sector enterprises should follow the principles of
business” Is it true? [16]
6. How do you estimate the fixed and working capital requirements of an industrial unit? [16]
7. From the following trial balance taken from the books of Bhagawan as on 31st March 2006, prepare
Trading Account, Profit and Loss Account and Balance Sheet. [16]

Dr. Cr.
Drawings and capital 7,200 60,000
Opening stock 20,500
Purchases and sales 68,000
Carriage outwards 1,500
Debtors and Creditors 23,500
Cash 3,900
Salaries 25,300
Bills payable 4,200
Insurance 11,200
Machinary 30,000
Wages 21,500
Commission received 1,000
General expenses 6,900
Packing expenses 500

(a) Closing stock was valued at Rs.40,000

(b) Provide depreciation on machinery at 5%.

8. With what reasons creditors, financiers and investors will study and examine financial information of
a business unit and what approach do they make? Illustrate.
[16]

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