Question

Share Capital Rs. 80,000, General Reserve Rs 40,000
15% Loan from bank Rs 50,000
Revenue from operations for the
year Rs 1,00,000
Tax paid during the year Rs 20,000
profit after interest and tac Rs 40,000
Calculate the following
ratios :
Debt to Equity ratio
Interest coverage ratio
return on investment ratio​

Answer 1

Answer:

Share Capital Rs. 80,000, General Reserve Rs 40,000

15% Loan from bank Rs 50,000

Revenue from operations for the

year Rs 1,00,000

Tax paid during the year Rs 20,000

profit after interest and tac Rs 40,000

Calculate the following

ratios :

Debt to Equity ratio

Interest coverage ratio

return on investment ratio

Explanation:

Share Capital Rs. 80,000, General Reserve Rs 40,000

15% Loan from bank Rs 50,000

Revenue from operations for the

year Rs 1,00,000

Tax paid during the year Rs 20,000

profit after interest and tac Rs 40,000

Calculate the following

ratios :

Debt to Equity ratio

Interest coverage ratio

return on investment ratio