54 :- Total Debt Rs 60,00,000; Shareholder’s Funds Rs 10,00,000; Reserves and Surplus Rs 2,50,000; Current Assets Rs 25,00,000; Working Capital Rs 5,00,000. Calculate Total Assets to Debt Ratio.
Solution :-
Total Assets = Total Debts + Shareholder’s funds
= 60,00,000 + 10,00,000
= Rs 70,00,000
Working Capital = Current Assets – Current Liabilities
5,00,000 = 25,00,000 – Current Liabilities
Current Liabilities = Rs 20,00,000
Total Debts = Current Liabilities + Non – Current Liabilities
60,00,000 = 20,00,000 – Non – Current Liabilities
Non – current Liabilities = Rs 40,00,000
Total Assets to Debt Ratio = Total Assets/Debt
= 70,00,000/40,00,000
= 1.75 : 1