Question

calculate proprietory ratio. long term borrowing 20, long term provision 30, current liabilities 40, non current assets 50, current assets 60​

Answer 1

Answer:

Debt =Long-term Borrowings+Longs -term Provisions

=Rs 2500000+Rs 1500000=Rs 4000000

Total Assets =Non -Current Assets +Current Assets

=Rs 4000000+ Rs 4000000=Rs 8000000.

Proprietors's Funds/Equityt=Total Assets-Non-Current Liabilities-Current Liabilities

=Rs 8000000-Rs 4000000-Rs 2000000=Rs 2000000

Proprietary Ratio =Proprietors's fundsTotal Assets×10=Rs2000000Rs8000000×100=25%

Debt To Equity Raito =(Debt)/(Equity)=Rs4000000Rs2000000=2:1

Total Assets to Debt Ratio =Total AssetsDebt=Rs8000000Rs4000000=2:1