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

Grain boundary, Q.  Describe the structure of grain boundary. Ans. O...

Q.  Describe the structure of grain boundary. Ans. One phase of metal contains many grains of various orientation, the individual crystals are called grains. Thus a grain is

Comparator, Comparator A comparator is a device, which compares two inp...

Comparator A comparator is a device, which compares two input voltages and indicates at the output, which of the two is the larger.  Basically, the circuits use a differential

Semiconductor basics summary, N-type (for example add Antimony) The are...

N-type (for example add Antimony) The are materials which have Pentavalent impurity atoms (Donors) added and conduct by the "electron" movement and are called as N-type Semi

Explain in brief about priority rules for scheduling?, Question 1 A large ...

Question 1 A large number of forecasting methods are available. Discuss the categories of forecasting methods Question 2 Explain how economic order quantity can be calculated

Math algebra calcilus, I am having difficulty with algebra pertaining toeng...

I am having difficulty with algebra pertaining toengineering

Digtal electronics, Design a combinational logic circuit that will generate...

Design a combinational logic circuit that will generate the square off all the combinations of three bit binary number represented by A,B,C

Finance help, After five years, what is Judy’s total income (interest par) ...

After five years, what is Judy’s total income (interest par) from each bond? Should she use this total as a way of deciding which bond to purchase?

Metal cutting tool, how to design a circural form tool on drawing sheet?

how to design a circural form tool on drawing sheet?

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