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

Visualizing data matlab, expertsmind.com has Visualizing Data solution in ...

expertsmind.com has Visualizing Data solution in matlab All the design features that are required to picture technological innovation and clinical information are available in

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

Depreciation Tax Calculation, Depreciation Calculation Two most popular me...

Depreciation Calculation Two most popular methods of charging depreciation are: straight line and diminishing balance or written-down value (WDV) methods. For reporting to the sha

Comparison of 2-stroke and 4-stroke engines, COMPARISON OF 2-STROKE AND 4-S...

COMPARISON OF 2-STROKE AND 4-STROKE ENGINES: Two-stroke engine possesses the following advantages over the four stroke type: 1.      Because of its valueless construction, the

Relaibilty , can u help me with a reliabilty assignment

can u help me with a reliabilty assignment

Solve problems using dc electrical principles, Electronics Engineering Assi...

Electronics Engineering Assignment# Solve problems using DC electrical principles 1.3 A 220 F capacitor is required to store 11mJ of energy. What voltage needs to appear

Blow moulding and thermoforming process, Q . Write short note on blow moldi...

Q . Write short note on blow molding. OR Explain the Thermoforming process.   What are the plastic fabrication method write in brief with neat sk

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