ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.37 : A biochemical engineering professional applies 5-step Du Pont formula in the accounting. Let Net Income = A, Earning Before Tax (EBT) = B, Earning Before Interest, Tax (EBIT) = C, Net Sales = D, Total Assets = E, Shareholders Equity = F. Let Tax Burden = A / B = 0.75, Interest Burden = B / C = 1.05, EBIT Margin = C / D = 0.27, Asset Turnover = D / E = 0.66, Return on Equity = A / F = 0.37. (a) Calculate the value of Leverage = E / F. (b) If AB + BC + CD + DE + EF = $$ 141932, find the values of A, B, C, D, E and F.
ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.37 : (a) Leverage = E / F = (A / F) / [ (A / B) (B / C) (C / D) (D / E) ] = 0.37 / [ (0.75) (1.05) (0.27) (0.66) ] = 2.6366. (b) Let 6 simulteneous equations with 6 unknowns could be formed where A / B = 0.75, B / C = 1.05, C / D = 0.27, D / E = 0.66, AB + BC + CD + DE + EF = 141932 = G. Simple computer programming could be used to perform trial-and-error calculation. For example, DATA : What-if Analysis : Goal Seek in Excel 2013 is able to set the value of G to 141932 by changing the value of A, B, C, D, E or F. Finally A ≈ $48, B ≈ $64, C ≈ $61, D ≈ $226, E ≈ $342, F ≈ $129. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.
| Is This Answer Correct ? | 0 Yes | 0 No |
Is there any way to slow coke formation in ethylene furnaces?
What does capacitor load means? How does it connect?
If I do M tech in chemical engineering from iit kgp,iit delhi or iit kanpur...what are the job opportunities,and what salary they offered.plz tell me...i had 156 all india rank..i did not take admission ..but this year i m thinking to take admission...
what is petrol density ? why ?
In case of welded vessels why is stress relieving in the form of post-weld treatment necessary?
Explain the strategies acquired to cure tube vibration and exchangers in a shell?
how to calculat suction head in centrifugal pump?
Hi, This is Naveen, plz if anybody have experience of IOCL interview, send me question.
Why an electromagnetic flow meter cannot be used for gases, steam and oil flow measurements?
CHEMICAL MATERIAL BALANCE – EXAMPLE 2.2 : Three hundred gallons of a mixture containing 75.0 wt % ethanol and 25 wt % water (mixture specific gravity = 0.877) and a quantity of a 40.0 wt % ethanol - 60 wt % water mixture (specific gravity = 0.952) are blended to produce a mixture containing 60.0 wt % ethanol. The specific gravity of a substance is the ratio of density of a substance compared to the density of water. The symbol of weight percent is wt %. (a) Estimate the specific gravity of the 60 % mixture by assuming that y = mx c where y is wt % ethanol, x is mixture specific gravity. Values for m and c are constants. (b) Determine the required volume of the 40 % mixture.
What is happening when paint dries?
Question 101 - (a) Let | A > = (Aa Ab Ac), | B > = (Ba Bb Bc), | C > = (Ca Cb Cc). Find | A > + | C > - | B > in term of Aa, Ab, Ac, Ba, Bb, Bc, Ca, Cb and Cc. (b) Let d | E > = d (Ea Eb Ec) = (d Ea d Eb d Ec). If | E > = (6 7 8), find the value of 10 | E >.
Civil Engineering (5086)
Mechanical Engineering (4456)
Electrical Engineering (16639)
Electronics Communications (3918)
Chemical Engineering (1095)
Aeronautical Engineering (239)
Bio Engineering (96)
Metallurgy (361)
Industrial Engineering (259)
Instrumentation (3014)
Automobile Engineering (332)
Mechatronics Engineering (97)
Marine Engineering (124)
Power Plant Engineering (172)
Textile Engineering (575)
Production Engineering (25)
Satellite Systems Engineering (106)
Engineering AllOther (1379)