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

Resolving power and rayleigh criterion of resolution, Q. Explain Rayleigh c...

Q. Explain Rayleigh criterion of resolution. What is meant by resolving power of grating? Ans.   Resolving Power (i)  Meaning of Resolution : The resolving power of

Aircraft engine, what is the basic operation of gas turbine engine?

what is the basic operation of gas turbine engine?

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

Matlab, program how to estimate the inner curve using spline interpolation

program how to estimate the inner curve using spline interpolation

Ten principles of engineering economic analysis, Ten Principles of Engineer...

Ten Principles of Engineering Economic Analysis 1. Money has a time value. 2. Make investments that are economically justified. 3. Choose the mutually exclusive investment alt

Use of multicylinder engine, USE OF MULTICYLINDER ENGINE If, in a multi...

USE OF MULTICYLINDER ENGINE If, in a multi cylinder engine, power strokes are staggered, the limitation of flywheel can be overcome to a large extent. Torque diagram for 2 cyli

Variables and quantifiers in first-order logic, Variables and Quantifiers i...

Variables and Quantifiers in First-Order Logic - Artificial intelligence: Now suppose that we wanted to say that there is a meal at the Red Lion which costs only three pounds.

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