Question

2. Capital employed 50,00,000; current liabilities
20,00,000; land 60,00,000; trade receivable 4,00,000;
cash 5,00,000; investment(trade) 1,00,000; share
capital 35,00,000; 10% debentures 10,00,000; general
reserve 3,00,000; profit and loss 2,00,000 calculate
Asset to debt ratio. (7:1)

Answer 1

Explanation:

20,00,000; land 60,00,000; trade receivable 4,00,000;

cash 5,00,000; investment(trade) 1,00,000; share

capital 35,00,000; 10% debentures 10,00,000; general

reserve 3,00,000; profit and loss 2,00,000 calculate

Asset to debt ratio. (7:1)

Answer 2

$\sf\red{Total \: assets = Land\:and \: building+\: Trade\:receivables + \: Investment +\:cash \:and \: cash \: equivalents}$

$\implies$$\sf{60,00,000+4,00,000+1,00,000+5,00,000}$

$\implies$$\sf{70,00,000}$

$\sf\red{Equity =Share \:capital+ \:General \:reserve+ \: Surplus}$

$\implies$$\sf{35,00,000+3,00,000+2,00,000}$

$\implies$$\sf{40,00,000}$

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

$\implies$$\sf{ \frac{70,00,000}{10,00,000} }$

$\implies$$\sf{7:1}$