Question : Shareholders' Funds Rs. 14,00,000; Total Debts (Liabilities) Rs. 18,00,000; Current Liabilities Rs. 2,00,000. Total Assets to Debt Ratio will be
Option 1: 3:2
Option 2: 2:1
Option 3: 2.5:1
Option 4: None of the above.
Correct Answer: 2:1
Solution : Answer = 2:1 Total assets to debt ratio=$\frac{\text {Total Assets}}{\text {Debt}}$=$\frac{32,00,000}{16,00,000}$=2:1 Total Assets = Share Holder fund + Total debt=14,00,000+18,00,000=32,00,000. Debt=Total debt-current liabilities=18,00,000-2,00,000=16,00,000. Hence, the correct option is 2.
Question : From the calculated total assets to debt ratio. Shareholders’ funds Rs. 2,40,000 Total Debts (Liabilities) Rs. 46,00,000 Short-term debts (Current Liabilities) = Rs. 2,00,000.
Question : Shareholder fund Rs.14,00,000. Total debt Rs.16,00,000 and current liabilities Rs.4,00,000. The total assets-to-debt ratio will be
Question : Total Debts Rs. 15,00,000; Current Liabilities Rs. 5,00,000; Capital Employed Rs. 15,00,000. Calculate Total Assets to Debt Ratio.
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