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

Financial econometric , need solution in Financial econometric, Do you have...

need solution in Financial econometric, Do you have an expert in Financial econometric

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.

Shelf list filing - library management, Shelf List Filing   Shelf list ...

Shelf List Filing   Shelf list reflects the arrangement of documents in the library. That is to say, the classificatory arrangement of the documents in a library can be seen th

Assignment, I paid for and attached module 16 for answers this morning but ...

I paid for and attached module 16 for answers this morning but received answers for module 15. How can I get the correct set of answers for module 16 please

Alternative escape routes - means of escape, Alternative escape routes: ...

Alternative escape routes: Does everyone have access to the alternative routes or do some people have no choice about which way they go? Are all the escape routes

LAVOISIER LAPLACE''S LAW, GIVE EXPLANATION HOW THIS IS USEFUL IN APPLICATIO...

GIVE EXPLANATION HOW THIS IS USEFUL IN APPLICATION OF THERMODYNAMICS TOWARDS CHEMICAL PROCESS

Cro, types of blocking osicillators

types of blocking osicillators

Fibre optics communications, explain the fibre optic communication system w...

explain the fibre optic communication system with block diagram

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