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

Logic gate-or gate , logic gate-OR gate  Figure shows the symbol that r...

logic gate-OR gate  Figure shows the symbol that represents a 2 input OR gate together with its truth table. This gate will adopt a 1 state at its output terminal when either

Determine payback and npv, Payback & NPV Julia Corp. is in the business o...

Payback & NPV Julia Corp. is in the business of making sugar cookies. The company is considering the purchase of a new cookie making machine which will improve its manufacturing

QMETER, Explain how a Q-meter can be used to measure resistance inductance ...

Explain how a Q-meter can be used to measure resistance inductance and capacitance??

Communications system, Communications System • Information Source - ...

Communications System • Information Source - Information may take many forms: data, image, voice, video • Transmittter - Processes information into a form suitable for

Hot and cold working, the amount of cold working metal can withstand is dir...

the amount of cold working metal can withstand is directly related to which properties? name two and also discuss the effect that cold working has upon these properties?

Compositional defects, Q.   Explain the compositional defects. Ans. ...

Q.   Explain the compositional defects. Ans. Compositional Defect: This defect due to (a)    Alloying an element to original crystal. (b)   Impuring atom during origi

Linear programming, Gandhi Textile company produces shirts and pants.The sh...

Gandhi Textile company produces shirts and pants.The shirts demands for the following two months are 10 and 12 units,whereas the demand for pants are 14 and 15.The capacity for fab

Crystal symmetry, Q.   Define the crystal symmetry with reference to crys...

Q.   Define the crystal symmetry with reference to crystal structure. Ans.CRYSTAL SYMMETRY: A crystal is an orderly array of atoms in space. Atoms organize themselves in an

Aad instruction, Ask question #Minimum 100 words acexplanation of aad with ...

Ask question #Minimum 100 words acexplanation of aad with examplescepted#

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