(i) Liquid ratio |
(ii) Proprietary ratio |
Answer:
(i) Liquid Ratio \[=\frac{\text{Liquid}\,\text{Assets}}{\text{Current}\,\text{Liabilities}}=\frac{1,80,000}{1,00,000}=\,\,9\,:\,5\,\,or\,\,1.8\,:\,1\] Liquid Assets = Current Assets - Inventory = 2,00,000 - 20,000 = Rs. 1,80,000 (ii) Proprietary Ratio \[=\frac{Shareholders'\,Funds}{Total\,Assets}=\frac{5,00,000}{10,00,000}=\,\,1\,\,:\,2\] Equity Share Capital = 3,00,000 (+) Reserves and Surplus = 2,00,000 Shareholders' Funds = Rs. 5,00,000 Total Assets = Fixed Assets + Current Assets + Investments = 8,00,000 + 2,00,000 + 0 = Rs. 10,00,000
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