Saturday, 2 March 2013

Re: (VU-Study-Corner) fin621 final term subjetive

koi is qtn ki working bata dy ga samj nai a rhi plzzzzzzzzzzzzzzzzz.

The data shown below were taken from the financial records of J Ltd at the end of the year. The financial year of the company ends on 31, December each year.

 

 

Accounts Payable

Rs 50,000

Accrued Liabilities

Rs. 33,000

Cash

32,000

Inventories Jan

42,000

Inventories Dec

38,000

Marketable Securities

10,000

Operating Expenses

120,000

Prepaid Expenses

25,000

Purchases (Net)

360,000

Accounts Receivable Jan

61,000

Accounts Receivable Dec

61,000

Long Term Loan

150,000

Plant Assets

400,000

Sales

604,000

Sales Returns

20,000

Retained Earning

133,000

Share Capital (Rs.10 Par)

92,000

Market Price

18

Interest expense

30,000

 

 

On the basis of above information, calculate the following.


Debt to equity ratio (2)

Ratio of borrowed capital to Shareholders' funds is called

Debt – Equity Ratio. The debt-to-equity ratio is computed by simply dividing the total debt of the firm (including current liabilities) by its shareholders' equity:

 

= 2,90,000 = 0.6    i.e. Debt is 0.6 of Equity =Debt Ratio = 48.4: 62.5

   1,65,6000                                                          Equity Ratio

(Debt equity Ratio)                  

                                                   

Debt to total asset ratio (4)

Debt –To-Total-Assets: The debt-to-total assets ratio is derived by dividing a firm's

Total debt by its total assets: It indicates percentage of total assets financed by Debt

 

= Total outside liabilities /Debt                                         =  2,90,000   = 48.4%

   Total assets (total liabilities +shareholders funds)           5,99,000

 

Equity ratio: Total stockholders equity (including preferred stock) = 16,56,000 = 276.46%        

                       Total assets (total liabilities + shareholders funds)         5,99,000 


On Sat, Mar 2, 2013 at 1:16 PM, Shazia Bhatti <shaziabhattivu@gmail.com> wrote:


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