Information given is as follows:
Fixed Long term Loans Rs $3, 50, 000$
Fixed Assets Rs $12, 00, 000$
Share capital Rs $8, 00, 000$
Current Liabilities Rs $2, 50, 000$
Current Assets Rs $4, 00, 000$
Solvency Ratio is .

0.5 : 1

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5 : 12

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5 : 16

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16 : 17

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Solution

The correct option is A $0.5 : 1$
Solvency Ratio = Proprietary fund / Total asset
= Share capital / [Fixed asset + Current asset]
= $800000 / [1200000 + 400000]$
= $0.5 : 1$

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Information given is as follows:Fixed Long term Loans Rs 3,50,000Fixed Assets Rs 12,00,000Share capital Rs 8,00,000Current Liabilities Rs 2,50,000Current Assets Rs 4,00,000Solvency Ratio is .

The correct option is A 0.5:1Solvency Ratio = Proprietary fund / Total asset = Share capital / [Fixed asset + Current asset] = 800000/[1200000+400000] = 0.5:1

Information given is as follows:
Fixed Long term Loans Rs $3, 50, 000$
Fixed Assets Rs $12, 00, 000$
Share capital Rs $8, 00, 000$
Current Liabilities Rs $2, 50, 000$
Current Assets Rs $4, 00, 000$
Solvency Ratio is .

The correct option is A $0.5 : 1$
Solvency Ratio = Proprietary fund / Total asset
= Share capital / [Fixed asset + Current asset]
= $800000 / [1200000 + 400000]$
= $0.5 : 1$