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

Engineering physics, when same music is played in veena and violin , we sha...

when same music is played in veena and violin , we shall hear the sound of

thermodynamics, Steam enters in the turbine at 6 MPa and 450 deg C and exp...

Steam enters in the turbine at 6 MPa and 450 deg C and expands at some intermediate pressure 60 % of steam is extracted and remainder expands to 10 kPa at this Investigate the effe

Homework, What are the no-arbitrage lower bound, and the no-arbitrage upper...

What are the no-arbitrage lower bound, and the no-arbitrage upper bound, of the vertical spread C(k1) - C(k2) ?

Material science and engineeing, cite advantages of forming metal by extrus...

cite advantages of forming metal by extrusion as opposed to rolling

Auxiliary power unit oil system, Auxiliary power unit oil System: A sum...

Auxiliary power unit oil System: A sump at the bottom of the gearbox collects the returning oil, in some APU's the rear face of the sump is finned and let into the intake plenu

Public health eng, Design a sewer collection system incorporating flow rate...

Design a sewer collection system incorporating flow rates, pipe sizes and pipe slopes for the proposed residential development shown in the attached drawing. In your design, locat

Flight dynamics - velocity component, Force, Moment, Velocity and Angular V...

Force, Moment, Velocity and Angular Velocity Components • Aerodynamic Force Components - X, Y, Z • Velocity Components - U, V, W (or Vx, Vy, Vx) • Angular Velocity Components - P,

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