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

LAVOISIER LAPLACE''S LAW, GIVE EXPLANATION HOW THIS IS USEFUL IN APPLICATIO...

GIVE EXPLANATION HOW THIS IS USEFUL IN APPLICATION OF THERMODYNAMICS TOWARDS CHEMICAL PROCESS

Manufacturing definition and its importance, Economic Definition :  Manufa...

Economic Definition :  Manufacturing increase the value of product. Technological Definition :  Manufacturing is a process which gives required strength, shape and size of t

Barrier potential, Ask question #Minimum 100 words acwhat are the polaritie...

Ask question #Minimum 100 words acwhat are the polarities of barrier potential cepted#

Dsd subject, give me basic programming of vhdl

give me basic programming of vhdl

Matlab, load flow analysis by fast decoupled method

load flow analysis by fast decoupled method

Balanced mutual fund, Balanced Mutual Fund The mutual fund that objective i...

Balanced Mutual Fund The mutual fund that objective is a balance of stocks & bonds. Balanced funds refer to be less volatile than stock only funds. The return or principal value of

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