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

Transistors, Transistors: The transistor can be a high or low resistanc...

Transistors: The transistor can be a high or low resistance device, hence the name, which is derived from TRANSfer resISTOR.  It is used in many switching and amplifier circ

LIBS, Laser induced breakdown spectroscopy

Laser induced breakdown spectroscopy

Lean enterprise, a department manufactures a produt using a kanban system. ...

a department manufactures a produt using a kanban system. data is demand/hr= 30, container size= 5, unit processing time= 1.25 min. find the minimum number of kanban assuming reple

Engineering physics 1, scaning electro microscope,transmission microscope

scaning electro microscope,transmission microscope

Caselet- 2, suggestion regarding credit limit. should it be approved or not...

suggestion regarding credit limit. should it be approved or not what should be the amount of

Rubber, What is smoked rubber

What is smoked rubber

Creep, strain rate on creep

strain rate on creep

Blade twist - aircraft engine, BLADE TWIST: Rotational velocity and its...

BLADE TWIST: Rotational velocity and its effect on the Angle of Attack depends on the radius of the blade element in question. A blade element near the blade root (hub) will h

Propeller control, Propeller Control: There is no separate propeller co...

Propeller Control: There is no separate propeller control selector for this engine / propeller combination. Instead of a separate propeller control lever, the governor is desi

An essay on power train, Interior noise is basically airborne or structure-...

Interior noise is basically airborne or structure-borne. The excitation sources of vibratation and noise from engines can be divided as mechanical, combustion, and flow sources.

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