Question

From the following information, calculate Total Assets to Debt Ratio:

	₹			₹
Fixed Assets (Gross)	6,00,000		Accumulated Depreciation	1,00,000
Non-current Investments	10,000		Long-term Loans and Advances	40,000
Current Assets	2,50,000		Current Liabilities	2,00,000
Long-term Borrowings	3,00,000		Long-term Provisions	1,00,000

Answer 1

$\begin{array}{l}\text{Debts}=\text{Long-term Borrowings+Long Term Provisions}=3,00,000+1,00,000=\text{Rs 4,00,000}\\ \text{Total Assets}=\text{Non-Current Assets + Current Assets}\\ =6\text{,00,000 -1,00,000+10,000}+2\text{,50,000+40,000}=\text{Rs 8,00,000}\\ \mathrm{Total}\mathrm{}\mathrm{Assets}\mathrm{}\mathrm{to}\mathrm{}\mathrm{Debt}\mathrm{}\mathrm{Ratio}\mathrm{}=\frac{\mathrm{Total}\mathrm{}\mathrm{Assets}}{\mathrm{Debt}}\\ \text{=}\frac{8,00,000}{4,00,000}=2:1\end{array}$