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

Oscilloscope, Expertsmind.com brings you unique solution in electrical en...

Expertsmind.com brings you unique solution in electrical engineering   What is an Oscilloscope? An oscilloscope is a test instrument that displays a graph of voltage vers

Difference between soldering, Q. What are the differences between soldering...

Q. What are the differences between soldering, brazing and welding? Ans. S.No.  Welding Soldering Brazing

Dsp, Dit fft idft

Dit fft idft

Composition of two simple harmonic motion at straight line, show the practi...

show the practical use of it also descibe it elaborately why it is useful which way we can use it where we use it

CHEMICAL ENGINEERING REACTIONS ASSIGNMENT, HI,I GOT ASSIGNMENTS TO TURN IN ...

HI,I GOT ASSIGNMENTS TO TURN IN WITHIN 24 HOURS.PLEASE IS THERE ANYWAY YOU COULD HELP OUT?

Evacuation of a high rise building - means of escape, Evacuation of a high ...

Evacuation of a high rise building - means of escape: Evacuation of a high rise building is likely to be split into two or more phases.  Initially, when the alarm activates (f

Roll-compacting, Q. Describe the continuous production of metal strip by ro...

Q. Describe the continuous production of metal strip by roll compacting of powder. Differentiate between impregnation and infiltration. Ans. Roll-compacting : It is the

Fins vs canards , Fins vs Canards  Canard control - Good lift/latax co...

Fins vs Canards  Canard control - Good lift/latax control for moderate angles of attack. - Shed vortices can interfere with tail to generate roll moment. - Tendency to stall

Commented carbides, Q. What are the commented carbides? How are they proces...

Q. What are the commented carbides? How are they processed? Ans. These are very important products of powder metallurgy and finds wide applications as cutting tools, wir

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