Accountancy, asked by rish9049, 1 year ago

Particular rs in lakhs net worth 250 total assets 600 long term debt 200 current liabilites 150 the debt equity ratio of company will be

Answers

Answered by Anonymous
2

Particular rs in lakhs net worth 250 total assets 600 long term debt 200 current liabilites 150 the debt equity ratio of

Answered by albelicat
1

The debt equity ratio of company will be 0.8

Explanation:

Given that

Net worth = 250

Total assets = 600

Long term debt = 200

Current liabilities = 150

So by considering the above information, the debt equity ratio is

Debt equity ratio = Debt ÷ Equity

where,

Debt = long term debt = 200

And, equity is

Total assets = Total liabilities + shareholder equity

where,

Total assets = 600

Total liabilities = Long term debt + current liabilities

                         = 200 + 150

                         = 350

So, the shareholder equity is

= 600 - 350

= 250

Therefore, the debt equity ratio is

= 200 ÷ 250

= 0.8

Hence, the debt equity ratio of the company will be 0.8

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