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

Barometric lag, My question is that i am working in a petrochemical plant w...

My question is that i am working in a petrochemical plant where in final stage disc ring reactor the barometric lag is chocked completely the system is under vacuum if i introduce

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)?

Mechanical design 2, Mechanical Design (48650) – Spring Semester 2012 Optim...

Mechanical Design (48650) – Spring Semester 2012 Optimisation Assignment – BUILDING A ROAD Teams of THREE to FIVE [3 to 5] – Worth 20% of the Semester Grade Due: Thursday 23rd Marc

Chains of inference, Chains of Inference Now we look at how to get an a...

Chains of Inference Now we look at how to get an agent to verify a given theorem using several search strategies. In previous lectures we have noted that, to specify a search p

Slipstream effect - propeller, Slipstream Effect. In passing through th...

Slipstream Effect. In passing through the propeller the air is accelerated and given a rotational velocity. The parts of the aircraft that are in the propeller slipstream wi

Reduction gearing in aircraft engine , Reduction Gearing : Compound epi...

Reduction Gearing : Compound epicyclic reduction gears enable a greater reduction in speed to be obtained without resorting to larger components. They may be of either the fix

Homework, name the functions of the CIPM

name the functions of the CIPM

Financial management, Explain and identify the different sources of finance...

Explain and identify the different sources of finances which are available to businesses and which sources of finance are internal sources and which are external sources?

Research paper, You will research an issue relating to money and banking. Y...

You will research an issue relating to money and banking. You will write an eight- to 10-page paper discussing your research, in depth. You will also need to relate your research t

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