Question

17. Calculate Total Assets to Debt Ratio from the following:
Shareholders' Funds
Total Debts
Current Liabilities
[Ans. Total Assets to Debt Ratio 13 : 8]
4,00,000
9,00,000
1,00,000​

Answer 1

Explanation:

400000:900000:100000

4:9:100000

2:9:50000

1:9:25000

I hope this will help. you

Answer 2

$\sf\red{Long-term \: debts = Total \: debts - Current \: liabilities}$

$\implies$$\sf{9,00,000-1,00,000}$

$\implies$$\sf{8,00,000}$

$\sf\red{Total\: assets = Long - term \: debts +Shareholders \: funds + Current \: liabilities }$

$\implies$$\sf{8,00,000+4,00,000+1,00,000}$

$\implies$$\sf{13,00,000}$

$\sf\red{Total \: assets \: to \: debt \: ratio = \frac{total \: assets}{debt} }$

$\implies$$\sf{\frac{13,00,000}{8,00,000} }$

$\implies$$\sf{1.625:1}$