(i) Debt equity ratio | (ii) Proprietary ratio | (iii) Total assets to debt ratio |
Particulars | Amt (Rs.) | |
I. | EQUITY AND LIABILITIES | |
1. Shareholders? Funds | ||
(a) Equity Share Capital | 30,00,000 | |
(b) Reserves and Surplus | 12,00,000 | |
2. Non-current Liabilities | ||
Long-term Borrowings (12% Debentures) | 10,00,000 | |
3. Current Liabilities | ||
(a) Short-term Borrowings | 4,00,000 | |
(b) Trade Payables | 24,00,000 | |
Total | 80,00,000 | |
II. | ASSETS | |
1. Non-current Assets | ||
(a) Fixed Assets | 33,00,000 | |
(b) Long-term Investments | 3,20,000 | |
2. Current Assets | ||
(a) Inventories | 18,20,000 | |
(b) Trade receivables | 24,80,000 | |
(c) Cash and Cash Equivalents | 80,000 | |
Total | 80,00,000 |
Answer:
(i) Debt Equity Ratio \[=\frac{Debt*}{Equity**}=\frac{10,00,000}{42,00,000}=0.238:1\] *Debt = Long - term Borrowings (Debentures) = Rs. 10,00,000 **Equity = Equity Share Capital + Reserves = 30,00,000+12,00,000=Rs. 42,00,000 (ii) Proprietary Ratio \[\,=\,\frac{Shareholder's\,Funds*}{Total\,Assets**}=\frac{42,00,000}{80,00,000}=0.525:1\] *Shareholders? Funds = Share Capital + Reserves = 30,00,000 + 12,00,000 = Rs. 42,00,000 ** Total Assets = Non-current Assets + Current Assets = Rs. 80,00,000 (iii) Total Assets to Debt Ratio \[=\,\frac{Total\,Assets}{Debt}=\frac{80,00,000}{10,00,000}=8:1\]
You need to login to perform this action.
You will be redirected in
3 sec