Question : Total Debts Rs. 15,00,000; Current Liabilities Rs. 5,00,000; Capital Employed Rs. 15,00,000. Calculate Total Assets to Debt Ratio.
Option 1: 3:2
Option 2: 2.5:1
Option 3: 2:1
Option 4: None of the above
Correct Answer: 2:1
Solution : Answer = 2:1 Total assets to debt ratio=$\frac{\text {Total Asset}}{\text {Debt}}$=$\frac{20,00,000}{10,00,000}$=2:1. Total assets = Capital employed + Current liabilities=15,00,000 + 5,00,000=20,00,000. Long term debt= Total debt - Current liabilities=15,00,000 - 5,00,000=10,00,000. Hence, the correct option is 3.
Question : Shareholders' Funds Rs. 14,00,000; Total Debts (Liabilities) Rs. 18,00,000; Current Liabilities Rs. 2,00,000. Total Assets to Debt Ratio will be
Option 2: 2:1
Option 3: 2.5:1
Option 4: None of the above.
Question : Shareholder fund Rs.14,00,000. Total debt Rs.16,00,000 and current liabilities Rs.4,00,000. The total assets-to-debt ratio will be
Option 1: 2:1
Option 3: 1:1
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