182 :- From the following, calculate (a) Debt to Equity Ratio; (b) Total Assets to Debt Ratio; and (c) Proprietary Ratio:
Solution :-
(a) Equity = Equity Share Capital + Preference Share Capital + General Reserve + Balance in Statement of Profit and Loss
= 75,000 + 25,000 + 45,000 + 30,000
= Rs 1,75,000
Debt – Equity Ratio = Debt/Equity
= 75,000/1,75,000
= 0.43 : 1
(b) Total Assets = Shareholder’s Funds + Debentures + Trade Payables + Outstanding Expenses
= 1,75,000 + 75,000 + 40,000 + 10,000
= Rs 3,00,000
Debt = Rs 75,000
Total Assets to Debt Ratio = Total Assets/Debt
= 3,00,000/75,000
= 4 : 1
(c) Proprietary Ratio = Shareholder’s Funds/Total Assets
= 1,75,000/3,00,000
= 0.58 : 1