Financial Ratio, Other Engineering

Assignment Help:
The following information was extracted from the accounting records of De Walt Company as at 28 February 2011 (the end of their financial year):
Sales (50% on credit) 1 400 000
Cost of Sales (all goods purchased on credit) 700 000
Net Income after tax 120 000
Tangible Assets 530 000
Inventory 200 000
Receivables 100 000
Cash 50 000
Payables 150 000
Loans @ 10% pa 100 000
Equity (300 000 ordinary shares @ R2 per share) 630 000
NB: Shares are trading at R2,40 per share at present
Required
1.1. Calculate the current ratio and acid test ratio for the current year and comment (NB: ratios for the previous year: Current 1,6:1 and acid test 0,6:1)
1.2. Calculate the debt equity ratio and comment on their level of gearing.
1.3. Calculate the EPS
1.4. Calculate the PE Ratio and comment on its significance.
1.5. Calculate the Market to Book ratio. Explain the importance of this ratio.

Related Discussions:- Financial Ratio

When should stock rather than debt to fund its operations?, When should sto...

When should stock rather than debt to fund its operations? There are several reasons for an organization to problem inventory rather than financial obligations. The first is if

Signal processing, why shift variant system causes artifacts

why shift variant system causes artifacts

Flight control -state estimators , State-estimators for continuous time lin...

State-estimators for continuous time linear systems The state space state and output equations of continuous time linear systems is of the form? x = Ax + Bu + v and y

Turbo shaft engines - aircraft engine , Turbo shaft engines : Gas turbi...

Turbo shaft engines : Gas turbine engines that deliver power through a shaft to operate something other than a propeller are referred to as turboshaft engines. In most cases th

Basic electronics, A car battery is of 12 v. eight dry cells of 1.5 v each ...

A car battery is of 12 v. eight dry cells of 1.5 v each connected in series can give 12 v. but such cells are not used in starting a car. why?

What are debentures?, What are debentures?  A Debenture is " A document ...

What are debentures?  A Debenture is " A document of contract of loans which is given under the organization's press and provides a venture that the debenture owner will get a s

Telecommunication Networks., Hi there, I''ve sent an email to you guys abou...

Hi there, I''ve sent an email to you guys about Telecommunication Networks assignment and I haven''t yet received any reply. Pleases let me know if you have received it. Thank yo

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd