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

Transistor configurations, TRANSISTOR CONFIGURATIONS: Before a transist...

TRANSISTOR CONFIGURATIONS: Before a transistor can be used, it must be connected into an input circuit (by two wires) and an output circuit (two wires).  However, because the t

Aerofoil aerodynamics -framework, Framework In the laboratory we will de...

Framework In the laboratory we will deal with low speed flows, at first using the potential flow solver. We will also investigate behaviour for the NACA 4-series of aerofoils.

Aerodynamics-influence on transition, Influence on transition Reynold...

Influence on transition Reynolds number - relates importance of viscousforces (relative to inertia) Lower Re - molecular diffusion more important; disturbances damped out

Welding techniques - plasma arc welding (paw), Plasma Arc Welding (PAW) is...

Plasma Arc Welding (PAW) is a special form of gas tungsten arc welding in which constricted plasma arc is directed at the weld area. In PAW, a tungsten electrode is contained in a

Leverage, defination of leverage,objectives,enterpritation,analysis,conclus...

defination of leverage,objectives,enterpritation,analysis,conclusion,references,review of literature.

Building economics, with sketches,describe single upper flows

with sketches,describe single upper flows

Thermodynamics, find the relation between enthalpy and internal energy?

find the relation between enthalpy and internal energy?

Sustainability concepts associated with ubiquitous computing, Question: ...

Question: (a) Spreading the spectrum for signal transmission helps alleviate the narrow band interference problem. What is narrow band interference? State and describe 2 differ

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