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

Thermo, what is the answer for 2+2=?

what is the answer for 2+2=?

Thermodynamics, original temp. of plate is 25 degree c.when put in burnace ...

original temp. of plate is 25 degree c.when put in burnace its upper part is 250 c and lower is 100 and mass is 56kg.find out heat transfer

Application to the axial flow compressor, APPLICATION TO THE AXIAL FLOW COM...

APPLICATION TO THE AXIAL FLOW COMPRESSOR: In order for the compressor to deliver a high mass airflow for a minimum effort required to drive it, it is important that all the com

Air-system in aircraft engine, Air-System in Aircraft Engine: In the wo...

Air-System in Aircraft Engine: In the working cycle and airflow section we discussed the main airflow and working cycle of a gas turbine engine and found that a major function

Theory of solar system, Expertsmind.com brings you unique solution in ele...

Expertsmind.com brings you unique solution in electrical engineering Define terms of Galaxy Clusters, Basic Astronomical Objects, Astronomical Distance Units, Terms

Apu powerplant installation, Apu powerplant installation: The APU engin...

Apu powerplant installation: The APU engine mounts consist of a number of supports with vibration isolators fitted to the end of each support. The tubular supports are bolted

Aviation legislation - maximum take-off mass, Aviation legislation - MAXIMU...

Aviation legislation - MAXIMUM TAKE-OFF MASS: Aircraft companies intending to manufacture a new design must have approval under Chapter A8-1 of BCAR or JAR-21 (Certification Pr

Constellation, Expertsmind.com brings you unique solution in electrical e...

Expertsmind.com brings you unique solution in electrical engineering -          A constellation is a region of the sky with well defined borders; familiar star pat

Efficient market hypothesis, the nature and importance of the efficient mar...

the nature and importance of the efficient market hypothesis and comment on the implications for managers and investors?

Request for quote, I need the following corporate finance problems complete...

I need the following corporate finance problems completed in an excel spreadsheet. How much would this cost? 1) An investment project requires a net investment of $100,000. The pr

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