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

Engineering economices, 2. A contractor has both a 3-cy and a 5-cy shovel i...

2. A contractor has both a 3-cy and a 5-cy shovel in the equipment fleet. Select the minimum size shovel that will excavate 400,000bcy of common earth in a minimum of 130 working d

Capital Budgeting Project.., Assignment: You are interested in proposing a ...

Assignment: You are interested in proposing a new venture to the management of your company. Pertinent financial information is given below. BALANCE SHEET Cash 2,000,000 Accounts

Environemental, How to Compute the carbon per mile for the car

How to Compute the carbon per mile for the car

FSE, A W12x40 beam is heated to 760°C. Answer the following questions. Wh...

A W12x40 beam is heated to 760°C. Answer the following questions. What is the W/D factor for sprayed protection? What is the W/D factor for box type protection? What is the spe

Switching transistors, SWITCHING TRANSISTORS When a transistor is to be...

SWITCHING TRANSISTORS When a transistor is to be used as a switching device, it operates either as an open circuit (i.e. in the cut-off region) or as a short circuit (i.e. in t

#title.graphics, draw diagonal scale of rf 1/500 and show 57.5m on it

draw diagonal scale of rf 1/500 and show 57.5m on it

Calculate the heat transfer coefficient , Water is flowing at 0.5 ms-1 acro...

Water is flowing at 0.5 ms-1 across a 7.5 cm diameter sausage at 80°C. If the bulk water temperature is 15°C, estimate the heat-transfer coefficient. a) What type of heat tranfe

Matrices for risk analysis, Matrices for risk analysis: NFPA 551 descr...

Matrices for risk analysis: NFPA 551 describes a technique of using matrices for risk analysis.  Such matrices are quite commonly used in the UK for assessing risk but, fortun

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