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प्रश्न
From the following, calculate (a) Debt Equity Ratio (b) Total Assets to Debt Ratio (c) Proprietary Ratio.
| Rs. | |
| Equity Share Capital | 75,000 |
| Preference Share Capital | 25,000 |
| General Reserve | 45,000 |
| Balance in the Statement of Profits and Loss | 30,000 |
| Debentures | 75,000 |
| Trade Payables | 40,000 |
| Outstanding Expenses | 10,000 |
उत्तर
a ) debt Equity Ratio = `"Debt"/ "Equity"`
Equity/ Shareholder funds = Equity Share Capital + Preference Share Capital + General Reserve + Accumulated Profit
= 75,000 + 25,000 + 45,000 + 30,000
Debt = Debentures = 75,000
Debt Equity ratio = `[75,000]/[1,75,000] = 3/7 = 0.43 : 1`
b) Total Assets to debt Ratio = `"Total assets"/"Debt"`
Total Assets = Equity Share Capital + Preference share Capital + General Reserve + Accumulated Profits + Debentures + Sundry Creditors + Outstanding Expenses (∵ Total liabilities is equal to total assets)
= 75,000 + 25,000 + 45,000 + 30,000 + 75,000 + 40,000 + 10,000
= 3,00,000
Total Assets to Debt Ratio = `[3,00,000]/[75,000] = 4 : 1`
C) Proprietary Ratio = `"Shareholder Funds"/"Net Assets"`
Proprietary Ratio = `[175,000]/[3,00,000] = 7/12 = 7 : 12 or 0.58 : 1`
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संबंधित प्रश्न
Long Answer Question
How would you study the solvency position of the firm?
Following is the Balance Sheet of Raj Oil Mills Limited as at March 31, 2017. Calculate Current Ratio.
| Particulars | (Rs) |
| I. Equity and Liabilities: | |
|
1. Shareholders’ funds |
|
|
a) Share capital |
7,90,000 |
|
b) Reserves and surplus |
35,000 |
|
2. Current Liabilities |
|
|
a) Trade Payables |
72,000 |
| Total | 8,97,000 |
| II. Assets | |
|
1. Non-current Assets |
|
|
a) Fixed assets |
|
|
Tangible assets |
7,53,000 |
|
2. Current Assets |
|
|
a) Inventories |
55,800 |
|
b) Trade Receivables |
28,800 |
|
c) Cash and cash equivalents |
59,400 |
| Total | 8,97,000 |
Calculate Current Ratio from the following information:
| Particulars | ₹ |
Particulars |
₹ |
||
| Total Assets | 5,00,000 | Non-current Liabilities | 1,30,000 | ||
| Fixed Tangible Assets | 2,50,000 | Non-current Investments | 1,50,000 | ||
| Shareholders' Funds | 3,20,000 |
|
|
||
Working Capital ₹ 3,60,000; Total :Debts ₹ 7,80,000; Long-term Debts ₹ 6,00,000; Inventories ₹ 1,80,000. Calcltate Liquid Ratio.
From the following calculate: (i) Current Ratio; and (ii) Quick Ratio:
| ₹ | ₹ | ||
| Total Debt | 6,00,000 | Long-term Borrowings | 2,00,000 |
| Total Assets | 8,00,000 | Long-term Provisions | 2,00,000 |
| Fixed Assests (Tangible) | 3,00,000 | Inventories | 95,000 |
| Non-current Investment | 50,000 | Prepaid Expenses | 5,000 |
| Long-term Loans and Advances | 50,000 |
From the following Balance Sheet of ABC Ltd. as at 31st March, 2019, Calculate Debt to Equity Ratio:
|
Particulars |
₹ |
|
| I. EQUITY AND LIABILITIES | ||
|
1. Shareholder's Funds |
||
|
(a) Share Capital: |
||
|
(i) Equity Share Capital |
5,00,000 |
|
|
(ii) 10% Preference Share Capital |
5,00,000 |
10,00,000 |
|
(b) Reserves and Surplus |
2,40,000 |
|
|
2. Non-Current Liabilities |
||
|
Long-term Borrowings (Debentures) |
2,50,000 |
|
|
3. Current Liabilities : |
||
|
(a) Trade Payables |
4,30,000 |
|
|
(b) Other Current Liabilities |
20,000 |
|
|
(c) Short-term Provisions: Provision for Tax |
3,00,000 |
|
|
Total |
22,40,000 |
|
| II. ASSETS | ||
|
1. Non-Current Assets |
||
|
Fixed Assets: |
||
|
(i) Tangible Assets |
6,40,000 |
|
|
(ii) Intangible Assets |
1,00,000 |
|
|
2. Current Assets |
||
|
(a) Inventories |
7,50,000 |
|
|
(b) Trade Receivables |
6,40,000 |
|
|
(c) Cash and Cash Equivalents |
1,10,000 |
|
|
Total |
22,40,000 |
|
₹ 3,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold). Inventory Turnover Ratio 8 times; Inventory in the beginning is 2 times more than the inventory at the end. Calculate value of Opening and Closing Inventories
Compute Gross Profit Ratio from the following information:
Cost of Revenue from Operations (Cost of Goods Sold) ₹5,40,000; Revenue from Operations (Net Sales) ₹6,00,000.
Net Profit before Interest and Tax ₹4,00,000; 15% Long-term Debt ₹8,00,000; Shareholders' Funds ₹4,00,000. Calculate Return on Investment.
State with reason whether the following transactions will increase, decrease or not change the 'Return on Investment' Ratio:
(i) Purchase of machinery worth ₹10,00,000 by issue of equity shares.
(ii) Charging depreciation of ₹25,000 on machinery.
(iii) Redemption of debentures by cheque ₹2,00,000.
(iv) Conversion of 9% Debentures of ₹1,00,000 into equity shares.
Calculate the amount of opening trade receivables and closing trade receivables from the following information:
Trade receivables turnover ratio 8 times
Cost of revenue from operations ₹ 4,80,000
The amount of credit revenue from operations is ₹ 2,00,000 more than cash revenue from operations. Gross profit ratio is 20%. Opening trade receivables are 1/4th of Closing trade receivables.
Choose the appropriate alternative from the given options:
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Current ratio is stated as a crude ratio because:
Current Ratio is ____________.
The important activity ratios calculated under Activity (or Turnover) Ratios are ______?
The ______ may indicate that the firm is experiencing stock outs and lost sales.
The ______ ratios provide the information critical to the long run operation to the firm.
X Ltd. has a Debt-Equity Ratio of 3 : 1. According to the management, it should be maintained at 1 : 1. What are the choices in front of management to do so?
Pick the odd one out:
Amount from current assets is realised within ______.
