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Question
On the basis of the following information, calculate Total Assets to Debt Ratio:
|
Particulars |
₹ |
Particulars |
₹ | ||
|
Capital Employed |
50,00,000 |
Share Capital |
35,00,000 | ||
|
Current Liabilities |
20,00,000 |
10% Debentures |
10,00,000 | ||
| Land and Building | 60,00,000 | General Reserve | 3,00,000 | ||
| Trade Receivable | 4,00,000 | Surplus, i.e., Balance in Statement of Profit and Loss | 2,00,000 | ||
| Cash and Cash Equivalents | 5,00,000 | ||||
|
Investment (Trade) |
1,00,000 |
|
|||
Solution
Total Assets to Debt Ratio = `"Total Assets"/"Long term Debt"`
Total Assets = Land and Buildings + Trade Receivables + Cash and Cash Equivalents + Investments (Trade)
= 60,00,000 + 4,00,000 + 5,00,000 + 1,00,000
= Rs 70, 00,000
Long Term Debts = Capital Employed - Shareholders’ funds
= 50,00,000 – 40,00,000
= Rs 10,00,000
Shareholder’s Fund = Share Capital + Reserve and Surplus
= 35,00,000 + 3,00,000 + 2, 00,000
= Rs 40,00,000
Total Assets to Debt Ratio =`7000000/1000000 = 7 : 1`
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You are able to collect the following information about a company for two years:
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|
|
2015-16 |
|
2016-17 |
|
Trade receivables on Apr. 01 |
Rs. |
4,00,000 |
Rs |
5,00,000 |
|
Trade receivables on Mar. 31 |
|
|
Rs |
5,60,000 |
|
Stock in trade on Mar. 31 |
Rs. |
6,00,000 |
Rs |
9,00,000 |
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Revenue from operations (at gross profit of 25%) |
Rs. |
3,00,000 |
Rs |
24,00,000 |
Calculate Inventory Turnover Ratio and Trade Receivables Turnover Ratio.
Current Ratio is 2.5, Working Capital is ₹ 1,50,000. Calculate the amount of Current Assets and Current Liabilities.
Total Debt ₹ 60,00,000; Shareholders' Funds ₹ 10,00,000; Reserves and Surplus ₹ 2,50,000; Current Assets ₹ 25,00,000; Working Capital ₹ 5,00,000. Calculate Total Assets to Debt Ratio.
From the following infromation, calculate Proprietary Ratio:
|
|
₹ |
| Equity Share Capital | 3,00,000 |
| Preference Share Capital | 1,50,000 |
| Reserves and Surplus | 75,000 |
| Debentures | 1,80,000 |
|
Trade Payables |
45,000 |
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7,50,000 |
|
Fixed Assets |
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|
Other Current Assets |
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|
7,50,000 |
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|
Particulars |
Note No. |
Amount |
|
I. EQUITY AND LIABILITIES 1. Shareholders' Funds |
|
|
|
(a) Share Capital |
|
6,00,000 |
|
(b) Reserves and Surplus |
|
1,50,000 |
|
2. Current Liabilities |
|
|
|
(a) Trade Payables |
|
1,00,000 |
|
(b) Other Current Liabilities |
|
50,000 |
|
(c) Short-term Provisions (Provision for Tax) |
|
1,00,000 |
|
Total |
|
10,00,000 |
|
II. ASSETS |
|
|
|
1. Non-Current Assets |
|
|
|
Fixed Assets (Tangible Assets) |
|
5,00,000 |
|
2. Current Assets |
|
|
|
(a) Current Investments |
|
1,50,000 |
|
(b) Inventories |
|
1,00,000 |
|
(c) Trade Receivables |
|
1,50,000 |
|
(d) Cash and Cash Equivalents |
|
1,00,000 |
|
Total |
|
10,00,000 |
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| 31st March 2018 (₹) | 31st March 2019 (₹) | |
| Revenue from Operations (Net Sales) | 8,00,000 | 7,00,000 |
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| Sales Return | 1,00,000 | 50,000 |
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| Liabilities | 31-03-2019 (₹) |
31-03-2020 (₹) |
| 12% debentures | 2,00,000 | 1,60,000 |
Additional Information:
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| Amount | (in ₹) | (in ₹) | (in ₹) |
| Outstanding Expenses | 50,000 | 40,000 | 25,000 |
| Prepaid Expenses | 3,00,000 | 2,50,000 | 3,50,000 |
| Trade Payables | 18,00,000 | 16,00,000 | 14,00,000 |
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