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

Heat transfer, #questionA piece of Al weighing 6 kg and initially at a temp...

#questionA piece of Al weighing 6 kg and initially at a temperature of 300OC is suddenly immersed in a fluid at a temperature of 20OC. The convectice heat transfer coefficient is 5

Explain the following spread spectrum techniques, Question : What is th...

Question : What is the ISM band and what is particular about this frequency band? Name two wireless technologies that make use of the ISM frequency band. a) Explain the foll

Basic characteristics of fire safety management, Basic characteristics of f...

Basic characteristics of fire safety management: basic characteristics - sensibility, reactivity, mobility, and susceptibility - comprise a minimum, exhaustive set of mutually

Assembly buildings - fire risk assessment, Assembly buildings: Assembl...

Assembly buildings: Assembly buildings are high life risk premises.  People often very densely occupy such buildings and they do so in large numbers so they must be given good

High rise buildings - fire protection engineering, High rise buildings: ...

High rise buildings: High rise buildings have their own particular requirements for fire safety and for fire fighting.  Means of escape rely on most people descending the stai

Question for wator resources engineering, Compute the motor size required t...

Compute the motor size required to pump 28.3 cms through a 3,050 m long, 3.66 m diameter pipeline to an upper reservoir 610 m above the lower reservoir. Use a friction facter of 0.

Layout and operation of typical thrust reversing system, Layout and operati...

Layout and operation of typical thrust reversing system: Clamshell door system The clamshell door system is a pneumatically operated system, as shown in detail in fig Norm

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