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Total Assets - 3,50,000 Total debt : 32,00.000 creditors 2,50.000 BP 20000 Short term borrowingg - 1,00,000 Outstanding exp : 30,000 Find total Assets to debt Ratio. |
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Answer» Debt- Equity Ratio = Shareholder ′ sFundsLong−TermDebt Total Assets = Total Liabilities + Shareholder's Funds Total Assets = CURRENT Assets + Non-Current Assets = 1,80,000 + 7,20,000 = 9,00,000 Total Liabilities = Long TERM Borrowings + Long-Term Provisions + Current Liabilities = 4,00,000 +2,00,000+1,00,000 = 7,00,000 Therefore, Shareholder's funds = Total Assets Total Liabilities = 9,00,000 7,00,000 = 2,00,000 Long-Term Debt = Long Term Borrowings + Long-term Provisions = 4,00,000+2,00,000 = Rs 6,00,000 Therefore, Debt -equity ratio = 2,00,0006,00,000 =3:1(b) Current ratio = CurrentLiabilitiesCurrentAssets (1) A bill payable of Rs. 9,000 was met on maturity will affect:1.Trade Payable will reduce by Rs.9,0002.Cash will reduce by Rs.9,000Simultaneous decreases in current assets and current liabilities will improve current ratio Issue of SHARE of Rs.10,00,000 to vendor of machinery will affect the following 1.Increases on the balance of machinery 2.Increase in the amount of share capital This transaction will neither affect current liabilities nor current assets.Thus ,current ratio will remain UNCHANGED. |
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