User Account

All Pages

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

Law of gearing, define lawof gearing

define lawof gearing

#title.MARKET VALUE WEIGHT OF EQUITY., AAA has 1,000,000 shares of common s...

AAA has 1,000,000 shares of common stock trading at $20.00 per share. The company''s debt consists of 2,000 $1,000 par value 10-year 7.0% annual coupon bonds with semiannual paymen

Hot and cold working, advantages and disadvantages of cold and hot working

advantages and disadvantages of cold and hot working

FI560, Each student will, as part of the course requirements, submit a rese...

Each student will, as part of the course requirements, submit a research paper on an individual stock. You are allowed to select any stock that trades on the New York Stock Exchang

Fluid (liquid) ice protection systems, FLUID (LIQUID) ICE PROTECTION SYSTEM...

FLUID (LIQUID) ICE PROTECTION SYSTEMS: Liquid ice protection systems can be used as either anti-ice or de-ice systems.  The system is designed to project a film or fluid over t

Manufacturing process, why is it necessary for all engieers to about manufa...

why is it necessary for all engieers to about manufacturing process

INSTRUMENTATION, TRANSDUCERS

TRANSDUCERS

Metallurgical engineering, the amount of cold working a metal can withstand...

the amount of cold working a metal can withstand

Steamtables, How to draw diagrams for Rankine cycle

How to draw diagrams for Rankine cycle

#title.DSP, 8051 microprocessor

8051 microprocessor

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd