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

Matlab, Provided a 1D array of integers, find all combinations of 3 values ...

Provided a 1D array of integers, find all combinations of 3 values from this set such that: a+b+c=0 For example, if one were provided with the set [3 1 3 -4 -6], the resulting answ

Miller sweep generator, I want circuit diagram of miller sweep generator wi...

I want circuit diagram of miller sweep generator with components using two transistor bc547

Leverage, defination of leverage,objectives,enterpritation,analysis,conclus...

defination of leverage,objectives,enterpritation,analysis,conclusion,references,review of literature.

False alarms & cm , False Alarms & CM  The mis-association of false ...

False Alarms & CM  The mis-association of false alarms with target tracks has two main e!ects.  - It tends to increase the actual tracking errors in the system because

Working of i.c. engine, WORKING OF I.C. ENGINE Basically there are 2 ty...

WORKING OF I.C. ENGINE Basically there are 2 types of internal combustion engines; the two stoke type and the 4-stroke type. A brief description of these is given below: 1.

Automatic interior car lights control, hi there, i need to know if its poss...

hi there, i need to know if its possible to create a circuit of automatic interior car lights control

Moulding materials, The commonly used moulding materials for mould making...

The commonly used moulding materials for mould making can be broadly classified into the following two groups :             (a) Metals : Including grey cast iron, steel and an

Students industrial work experience, Where are the recomended areas or indu...

Where are the recomended areas or industries where an Agricultural Engineering Student can apply for industrial training?

Mine engineering, Students are to undertake a tunnel blast design for the f...

Students are to undertake a tunnel blast design for the following conditions: • Tunnel is 5.5m wide by 5.5.m high • Rock is a sandstone with a UCS of 400 MPa • Drill hole diameter

Density correction factor, superheated steam flow measurement please provid...

superheated steam flow measurement please provide formula used for density correction factor

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