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

Reduction gearing in aircraft engine , Reduction Gearing : Compound epi...

Reduction Gearing : Compound epicyclic reduction gears enable a greater reduction in speed to be obtained without resorting to larger components. They may be of either the fix

Inspecting a sprinkler systems, Inspecting a Sprinkler Systems: When i...

Inspecting a Sprinkler Systems: When inspecting a building that has sprinklers fitted it is not easy to check that the correct water pressure and flow rate can be achieved by

Falling weight impact testing , Drop-weight impact towers are frequently us...

Drop-weight impact towers are frequently used to generate low velocity impact damage. Typically, the falling mass will be instrumented, containing a load-cell for measuring the lo

Timber, micro structure of exogenous tree

micro structure of exogenous tree

Calculate the density at maximum flow, (a)  A section of road has a free fl...

(a)  A section of road has a free flow speed of 55km/h and a jam density of 367 vehicles per kilometre. Assuming under a linear speed-density relationship, calculate the density at

Engineering signals, Engineering Signals A signal is a variation of a m...

Engineering Signals A signal is a variation of a measurable quantity that conveys information about the behaviour of a system. • A signal can depend upon a single variable o

Compressor, from suction side oil comes out

from suction side oil comes out

Base case NPV analysis , How base case NPV analysis is applied in financial...

How base case NPV analysis is applied in financial risk management

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