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

Aircraft engine, what is the basic operation of gas turbine engine?

what is the basic operation of gas turbine engine?

Flight dynamics - pitching moment, The centre of pressure (CP) is defined a...

The centre of pressure (CP) is defined as the point about which the resultant moment is zero; the net effect of the flow in terms of forces and moments would be the same as if the

Excel, How do I finish a tough Engineering assignment in excel?

How do I finish a tough Engineering assignment in excel?

What is tact?, What is Tact? Tact is nothing but a situational score ene...

What is Tact? Tact is nothing but a situational score energy. Once I had gone to a Govt workplace for getting documentation. There I was informed to provide unwanted fee more th

Smoke control - fire protection engineering, Smoke control - fire protectio...

Smoke control - fire protection engineering: Smoke control is a complex subject and requires a course of at least one whole week to begin to understand how it is used in build

Circuit analysis, One thing I have always thought that experienced repair p...

One thing I have always thought that experienced repair people knew about was circuit analysis. I always imagined that when looking at schematics I would be able to figure the vol

Divided entrance duct - aircraft engine, Divided entrance duct On a sin...

Divided entrance duct On a single engine aircraft with fuselage mounted engines, either a wing root inlet or a side scoop inlet may be used. The wing root inlet presents a pro

Financial Ratio, The following information was extracted from the accountin...

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 Cos

Fuels and lubrication technology, minimum mass of air required for complet...

minimum mass of air required for complete combustionof the HFO

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