Question

Calculate Proprietary ratio from the following:

Fixed assets 1280000
current assets 720000
8% Debentures 560000
10% Mortgage loan 330000
Bank overdraft 220000
trade payables 190000​

Answer 1

Answer:

$Proprietary \: Ratio = \frac{shareholders \: fund}{total \: assets}$

$Proprietary \: ratio = \frac{700000}{2000000} \\ = 0.35$

Working note

Total assets = current assets + Fixed Assets

720000+1280000

2000000

Shareholder's fund=Total Assets - total liabilities

Total liabilities = 8%Debentures+10% Mortgage

loan+Bank overdraft +trade

payables

=560000+330000+220000

+ 190000

= 1300000

Shareholder's fund= 2000000-1300000

= 700000

Answer 2

Answer:ugxvfbvgvfghgghjjgfdvgchhdhgjvbfyyjghhyuty7

Explanation: