User Account

All Pages

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

The research about thermoset polymer products, Chemical Engineering The re...

Chemical Engineering The research about thermoset polymer products. For example Polyimide Film Thermosetting and Pressure-Sensitive Adhesive Tape.

Trusses, Analysis of truste,2D truss analysis using method of joint(cantile...

Analysis of truste,2D truss analysis using method of joint(cantilever & simply support)?

Aircraft radio installation licence and approval, AIRCRAFT RADIO INSTALLATI...

AIRCRAFT RADIO INSTALLATION (STATION) LICENCE AND APPROVAL 1. A radio installation licence is issued by the Department of Trade and Industry Radio Communications Agency , fo

Is the dividend paid on common stock taxable to shareholders, Is the divide...

Is the dividend paid on common stock taxable to shareholders? The results paid on common inventory are taxed on two stages in the U.S. First at the company stage, as a results c

Secure communication, Distinguish between passive and active attacks,

Distinguish between passive and active attacks,

Oscilloscope probes, Direct probe,isolation probe,high impedence probe,acti...

Direct probe,isolation probe,high impedence probe,active probe,current probe

Oil pumps, what is the function and location of the components?

what is the function and location of the components?

International finance, What will be the effects of an increase in the money...

What will be the effects of an increase in the money supply on the interest rate? What will be the effects of an increase in real output on the interest rate?

Welding, what is causes of submage arc welding

what is causes of submage arc welding

Propeller terminology, PROPELLER TORQUE Propeller torque is produced by...

PROPELLER TORQUE Propeller torque is produced by the aerodynamic drag on the blades when in motion. Propeller torque acts in the plane of rotation and opposes engine torque.

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd