proprietary and total assets/debts ratio

Calculate Total Assets to Debt Ratio from the following information. Long-term Debts ₹ 4,00,000; Total Assets ₹ 7,70,000.

• 1.5:

• 1.925 : 1

• 1.85:1

• 2:1

Shareholder’s Funds ₹ 1,60,000; Total Debts ₹ 3,60,000; Current Liabilities ₹ 40,000. Calculate Total Assets to Debt Ratio.

• 1.30:1

• 1.52:1

• 1.80:1

• 1.625 : 1

Total Debt ₹ 60,00,000; Shareholder’s Funds ₹ 10,00,000; Reserves and Surplus ₹ 2,50,000; Current Assets ₹ 25,00,000; Working Capital ₹ 5,00,000. Calculate Total Assets to Debt Ratio.

• 1.75 : 1

• 1.50:1

• 1.30:1

• 2:1

Total Debt ₹ 15,00,000; Current Liabilities ₹ 5,00,000; Capital Employed ₹ 15,00,000. Calculate Total Assets to Debt Ratio.

• 1.75:1

• 1.5:1

• 1.80:1

• 2 : 1

Total Debt ₹ 12,00,000; Shareholder’s Funds ₹ 2,00,000; Reserves and Surplus ₹ 50,000; Current Assets ₹ 5,00,000; Working Capital ₹ 1,00,000; Calculate Total Assets to Debt Ratio.

• 1.80:1

• 1.75 : 1

• 1.35:1

• 1.60:1

Calculate Proprietary Ratio, if Total Assets to Debt Ratio is 2 : 1. Debt is ₹ 5,00,000. Equity Shares Capital is 0.5 times of debt. Preference Shares Capital is 25% of equity share capital. Net Profit before tax is ₹ 10,00,000 and rate of tax is 40%.

• 0.85:1

• 0.912 : 1

• 2:1

• 4:1

State, with reason, whether the Proprietary Ratio will improve, decline or will not change because of the following transactions if Proprietary Ratio is 0.8 : 1

(i) Obtained a loan of ₹ 5,00,000 from State Bank of India payable after five years.

• improve

• decline

• will not change

State, with reason, whether the Proprietary Ratio will improve, decline or will not change because of the following transactions if Proprietary Ratio is 0.8 : 1

(ii) Purchased machinery of ₹ 2,00,000 by cheque.

• Improve

• Decline

• No Change