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

Timber, seasoning of timber

seasoning of timber

Recovery and recrystallization, Q. What is Recovery and Recrystallization? ...

Q. What is Recovery and Recrystallization? Ans. Due to the cold working of metals there arise a large number of dislocations and distortion of planes. Cold working of metals

The research about thermoset polymer products, Chemical Engineering The re...

Chemical Engineering The research about thermoset polymer products. For example Polyimide Film Thermosetting and Pressure-Sensitive Adhesive Tape.

Range - Aircraft performance, Safe Operating Range The SOR is the max ...

Safe Operating Range The SOR is the max distance between airfields which the aircraft can fly with full allowance for headwind, diversion, stacking. • Distance flown in climb

Life cycle of a product from raw materials, The Task: This project is a...

The Task: This project is a 50% of the whole assessment of the course. You are required to assess a life cycle of a product from raw materials, through the supply chain, manufa

Providing alternative escape routes, Providing alternative escape routes: ...

Providing alternative escape routes: The first thing to check is if everyone can turn away from the fire and move safely away from it. For this to be the case there will

Internal rate of return: multiple alternatives, Internal Rate of Return: Mu...

Internal Rate of Return: Multiple Alternatives To compare multiple alternatives using the IRR as measure of economic worth we must use the incremental approach. It is erroneou

Trigonometry( bearings and rectilinear figures), a pilot entering a bay on ...

a pilot entering a bay on course 60.3 degrees at speed 12 miles per hour sees a light bearing 37.3 true and 20 minutes later he sees it bearing 20.0 degrees true. if he keeps the

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