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

Logic gate - not gate, THE INVERTER ('NOT' GATE) Figure shows the symbo...

THE INVERTER ('NOT' GATE) Figure shows the symbol for an inverter, where the output will produce the complement of the input. This device is often employed when the complement

Case study, Which type of financing is appropriate to each firm?

Which type of financing is appropriate to each firm?

The integrator, Integrator This circuit performs the calculus operation...

Integrator This circuit performs the calculus operation of integration. An operational amplifier with negative feedback applied via a capacitor (instead of a resistor) will pe

Interview Technique, Explain interview technique in software engineering in...

Explain interview technique in software engineering in brief?

What is ebidta?, What Is EBIDTA?  EBITDA appears for income before atten...

What Is EBIDTA?  EBITDA appears for income before attention, taxation, devaluation, and amount. EBITDA came into large use among personal investment companies, seeking to determ

Gravity die casting , Gravity Die Casting  In PERMANENT MOULD CASTING, ...

Gravity Die Casting  In PERMANENT MOULD CASTING, molten metal is poured under gravity into a metal mould where it remains until it solidifies. The mould is then opened and the

Causes of unbalance - aircraft design, Causes of unbalance Unbalance ma...

Causes of unbalance Unbalance may be caused by a variety of factors occurring singly or in combination with others. These factors include:- a) Eccentricity Eccentricity

Salvage value Terminal cash flows, Terminal cash flows Salvage value Sal...

Terminal cash flows Salvage value Salvage value (SV) is the most common example of terminal cash flows. Salvage value may be defined as the market price of an investment at the

Case study, I need to get this case study done. Here is a link to the case...

I need to get this case study done. Here is a link to the case: Disregard">http://ss-edu.info/df/cases/Case%2094.pdf Disregard question 10.

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