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

Class number arrangement - library management, Class Number Arrangement   ...

Class Number Arrangement   Unlike the Cities Numbers of Dewey Decimal Classification the Colon Class Numbers have not only Arabic Numerals but also capital letters of the Roman

Signal processing, why shift variant system causes artifacts

why shift variant system causes artifacts

Hardness of water, why is only 1 lime and sod required for aluminium impuri...

why is only 1 lime and sod required for aluminium impurities

Dual input unbalanced output differential amplifier ac analy, analysis of d...

analysis of dual input unbalanced output differential amplifier ac analysis?

Assignment on risk and return, Assignment on Risk and Return# Stock has bet...

Assignment on Risk and Return# Stock has beta of 1.5 & an expected return 11%. A risk free asset earns 2%. Determine the expected return on a portfolio that is equally invested in

Finite Element Analysis Assignment, Need help using FEA/FEM software (MSC M...

Need help using FEA/FEM software (MSC Marc/Mentat) to model and analyze a system,then write a lab report about it, it is due tomorrow... anything you can do for me?

Explain the concept of error function, Question 1 Explain the concept of e...

Question 1 Explain the concept of error function Question 2 Obtain the Fourier transform for the following Single sided exponential signal Gate function Triangula

Aerodynamics-boundary layers, Approach The Hanley solver does solve for ...

Approach The Hanley solver does solve for the boundary layer and potential flow (in a way we will think about later). However, it only gives us full access to the potential solu

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