Calculate Total Assets to Debt Ratio from the following:
Rs
Current Assets 22,00,000
Working Capital 13,00,000
Shareholder's Funds 15,00,000
Total Debt 39,00,000
Reserve and Surplus 5,00,000
Dear Student
We know that
Total assets to Debt Ratio =
Regards
We know that
Total assets to Debt Ratio =
| We are given that | ||
| Working Capital | 1,300,000 | |
| Current Asset | 2,200,000 | |
| Because Working Capital = C.A - C.L. | ||
| Current Liability | 900,000 | |
| Calculation of Non Current Assets : | ||
| Share Holder's Fund | 1,500,000 | |
| Add : Reserves and Surplus | 500,000 | |
| Add : Total Debt | 3,900,000 | |
| Add : Current Liability | 900,000 | |
| Total Liability Side | 6,800,000 | |
| Less : Current Assets | 2,200,000 | |
| Non Current Assets | 4,600,000 | |
| Total Assets | 6,800,000 |
Regards