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

Keplers’s three laws of planetary motion, Expertsmind.com brings you uniqu...

Expertsmind.com brings you unique solution in electrical engineering -          Ancient people kept track of time and seasons as it affected agriculture. -          Some

Genetic algorithm procedure, Genetic Algorithm Procedure Generate a ...

Genetic Algorithm Procedure Generate a "pool" of "genes" randomly These genes are then "mated" to produce the "mated" to produce the next generation Best genes have a

4 bit comparator, process / description.. if I put A=1000 and B=0100 A>B ga...

process / description.. if I put A=1000 and B=0100 A>B gate will show output 1 and dose A

Rubber, What is smoked rubber

What is smoked rubber

Optics, If the light source in figure 12.1 (see figure below) of the Warren...

If the light source in figure 12.1 (see figure below) of the Warren Smith text is replaced by a 100W light bulb, and the lens aperture is 20cm, what would the 1cm detector at point

Invalidation of certificate of airworthiness, INVALIDATION OF CERTIFICATE O...

INVALIDATION OF CERTIFICATE OF AIRWORTHINESS Listed below are the four major reasons why a Certificate of Airworthiness could become invalid. There may be other specific reason

ALGORITHM, write an algorithm to find a number that multiplies your name 10...

write an algorithm to find a number that multiplies your name 10 times

Vehicle kinematics, x(t)=integration((Vx(t)+Vy(t))/2*cos(theta)dt) where Vx...

x(t)=integration((Vx(t)+Vy(t))/2*cos(theta)dt) where Vx, Vy and theta is a function of t I am getting problem with how to write it down in matlab in order to get the position x.

Heisenberg''s uncertainty principle , According to this it is impossible to...

According to this it is impossible to specify precisely and simultaneously two physical quantities those are canonically conjugate to each other and the product of the uncertainty

Ans, How would you judge the potential profit ofBajaj Electronics on the fi...

How would you judge the potential profit ofBajaj Electronics on the first year of sales to Booth Plastics and give your views to increase the profit?

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