Financial Ratio, Other Engineering

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.
Posted Date: 5/5/2012 10:40:12 AM | Location : United States







Related Discussions:- Financial Ratio, Assignment Help, Ask Question on Financial Ratio, Get Answer, Expert's Help, Financial Ratio Discussions

Write discussion on Financial Ratio
Your posts are moderated
Related Questions
Direct from engine compressor: A Load valve is switched on from the flightdeck, power for the switch is available once the APU has achieved 95% + 3 sec. This energises the swit

various components used in plants


Why is there an asteroid belt? - Rocky planetismals survived in the asteroid belt between Mars and Jupiter because they did not grow together into a planet. - Jupiter’s gravity, t

How do comets get their tails? - Most comets stay frozen in the outer solar system. Only a few enter the inner solar system where they can grow tails. - When a comet nears the sun

TYPES OF ENGINE: The internal combustion engines for the automotive use may be classified according to the following considerations: Engine cycle Number of strokes F

Question 1 What is Artificial Intelligence? Discuss the two class of approaches followed for AI Question 2 Discuss the heuristic search as applied to an AND/OR Graph Ques

Q. What are the ingredients of moulding components? Ans. Polymer Additives: One or more of the following materials are added to the polymers, either before or during poly

5) Dupree Funds is considering the fees charged by two banks. First America charges a flat rate of $0.11 per payment and First Western requires a deposit of $500,000 (that does not

how many type of fet is present