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
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