Q14 Al Bawadi Grocery Materials LLC submitted the following Balance Sheet for the yearending 31 March, 2021:AssetsAmountLiabilitiesAmountCurrent AssetsCash in HandCash at BankAccounts ReceivablesStock of GoodsFixed AssetsLand & BuildingsCurrent Liabilities2,000Accounts PayableOutstanding SalariesNon-Current LiabilitiesSecured LoansUnsecured LoansNet worth/ CapitalEquity Share CapitalGeneral Reserves14,5004,0005,50020,00014,00035,00025,00060,000Plant & Machinery45,00060,000Furniture & Fittings15,00020,000Total Assets160,000Total Liabilities & Capital 160,000Calculate Solvency Ratio and Debt-Equity Ratio from the given Balance Sheet.

The solvency ratio is calculated to evaluate the position of the firm for finance on the basis of…

Al Bawadi Grocery Materials LLC submitted the following Balance Sheet for the year ending 31 March, 2021: Liabilities Current Liabilities Assets Amount Amount Current Assets Cash in Hand Cash at Bank Accounts Receivables Stock of Goods Fixed Assets 2,000 Accounts Payable 14,500 4,000 Outstanding Salaries 5,500 20,000 14,000 Non-Current Liabilities Secured Loans 35,000 Unsecured Loans Net worth/ Capital Equity Share Capital General Reserves 25,000 Land & Buildings Plant& Machinery Furniture & Fittings 60,000 45,000 60,000 15,000 20,000 Total Assets 160,000 Total Liabilities & Capital 160,000 Calculate Solvency Ratio and Debt-Equity Ratio from the given Balance Sheet.

Al Bawadi Grocery Materials LLC submitted the following Balance Sheet for the year ending 31 March, 2021: Liabilities Current Liabilities Assets Amount Amount Current Assets Cash in Hand Cash at Bank Accounts Receivables Stock of Goods Fixed Assets 2,000 Accounts Payable 14,500 4,000 Outstanding Salaries 5,500 20,000 14,000 Non-Current Liabilities Secured Loans 35,000 Unsecured Loans Net worth/ Capital Equity Share Capital General Reserves 25,000 Land & Buildings Plant& Machinery Furniture & Fittings 60,000 45,000 60,000 15,000 20,000 Total Assets 160,000 Total Liabilities & Capital 160,000 Calculate Solvency Ratio and Debt-Equity Ratio from the given Balance Sheet.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...

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