55 :- Total Debt Rs 12,00,000; Shareholder’s Funds Rs 2,00,000; Reserves and Surplus Rs 50,000; Current Assets Rs 5,00,000; Working Capital Rs 1,00,000. Calculate Total Assets to Debt Ratio.
Solution :-
Total Assets = Shareholder’s Funds + Total Debt
= 2,00,000 + 12,00,000
= Rs 14,00,000
Working Capital = Curernt Assets – Current Liabilities
1,00,000 = 5,00,000 – Current Liabilities
Current Liabilities = Rs 4,00,000
Total Debts = Current Liabilities + Non – Current Liabilities
12,00,000 = 4,00,000 + Non – Current Liabilities
Non – Current Liabilities = Rs 8,00,000
Total Assets to Debt Ratio = Total Assets/Debt
= 14,00,000/8,00,000
= 1.75 : 1