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

#title.electronic devices., Advantages and dis advantages of a diode in ser...

Advantages and dis advantages of a diode in series /shunt

Mba financial management , Which type of financing is appropriate to each f...

Which type of financing is appropriate to each firm caselet

Fire risk assessment in uk - fire protection engineering, Fire risk assessm...

Fire risk assessment in UK: In the UK FRAs are required by law in all commercial premises.  But the FRAs are not the same as described in NFPA 551.  The principles remain the

Heat transfer, Q. 1 A 50 cm diameter pipeline in the Arctic Carries hot oi...

Q. 1 A 50 cm diameter pipeline in the Arctic Carries hot oil at 30 0C and exposed to a coefficient surrounding temperature of -20 0C. Special powder insulation 5 cm thick surround

Students industrial work experience, Where are the recomended areas or indu...

Where are the recomended areas or industries where an Agricultural Engineering Student can apply for industrial training?

Finance help, After five years, what is Judy’s total income (interest par) ...

After five years, what is Judy’s total income (interest par) from each bond? Should she use this total as a way of deciding which bond to purchase?

Oversampling dac, Also called 1-bit DAC or sigma-delta DAC. It uses pulse-...

Also called 1-bit DAC or sigma-delta DAC. It uses pulse-density modulation (PDM) which encodes the signal amplitude by the relative density of the pulses. The output voltage has on

Financial management, Sharpe Knife Company expects sales next year to be $1...

Sharpe Knife Company expects sales next year to be $1,500,000 if the economy is strong, $800,000if the economy is steady, and $500,000if the economy willb e strong, a 50 percent pr

Heat and mass transfer, 1. Air at 1 atm, 90F, and 8 ft/s enters a thin-wall...

1. Air at 1 atm, 90F, and 8 ft/s enters a thin-walled tube of 4-in diameter. The tube surface temperature is maintained at 60F. Air exits the tube at 70F. Determine the length of t

Aviation legislation design and type certificate, Design, Construction and ...

Design, Construction and Type Certificate The following chapter covers the initial design, construction, registration and test flying of the first prototype of a new aircraft.

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