ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.37 : A biochemical engineering

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.

Question Posted / kangchuentat

1 Answers
1528 Views
I also Faced
E-Mail Answers

ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.37 : A biochemical engineering professional applie..

Answer / kangchuentat

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

Post New Answer

More Chemical Engineering Interview Questions

Explain how can you determine the proper pipe thickness for a slurry line?

0 Answers

What is an isochoric process?

0 Answers

can u tel me d question paper of gail?

0 Answers HPCL,

If the refrigerator is left open in closed room, What will be the effect on room temp.?

2 Answers

Water flows through a pipe with circular cross sectional area at the rate of V / t = 80 L / s where V is the volume and t is time. Let Av = 80 L / s where A is cross sectional area and v is velocity of fluid. For point 1, the radius of the pipe is 16 cm. For point 2, the radius of the pipe is 8 cm. Find (a) the velocity at point 1; (b) the velocity at point 2; (c) the pressure at point 2 by using Bernoulli’s equation where P Rgy 0.5 RV = constant. P is the pressure, R = density of fluid, V = square of fluid’s velocity, g = gravitational constant of 9.81 N / kg and y = 2 m = difference of height at 2 points. The pressure of point 1 is 180 kPa.

1 Answers

what is Vx-EHT(RED) complex chemical compound.

1 Answers Excel,

What are the factors involved in designing kettle type reboiler?

0 Answers

What are the affinity laws associated with dynamics pumps?

1 Answers HPCL,

What diffrence between flush distillation & batch distillation ?

0 Answers

What is some good advice for specifying allowable pressure drops in shell and tube exchangers for heavy hydrocarbons?

0 Answers

Explain what is the best way to configure a bypass line in slurry services?

0 Answers

Explain the method of determining maximum differential pressure during hydro testing of shell and tube heat exchangers?

0 Answers

For more Chemical Engineering Interview Questions Click Here