From the following information compute the following ratios:d) Debt to Equity Ratioe) Proprietary Ratio Amount(in $) AssetsShare capital2,00,000Profit & Loss 30,000AccountLiabilitiesGeneral Reserve12% DebenturesSundry CreditorsBills Payable40,0005,00,0002,00,00050,00010,20,000Land and BuildingsPlantMachineryStockAmount (in $)2,00,000and 4,00,000Sundry DebtorsBills ReceivableCash at Bank2,00,0002,00,00010,00010,00010,20,000

The proprietary ratio is the ratio which is used by the business in order to know about the…

Answered: d) Debt to Equity Ratio e) Proprietary…

Business

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d) Debt to Equity Ratio e) Proprietary Ratio

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter12: Capital Structure

Section: Chapter Questions

Problem 1PROB

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Question

From the following information compute the following ratios:
d) Debt to Equity Ratio
e) Proprietary Ratio

Amount(in $) Assets
Share capital
2,00,000
Profit & Loss 30,000
Account
Liabilities
General Reserve
12% Debentures
Sundry Creditors
Bills Payable
40,000
5,00,000
2,00,000
50,000
10,20,000
Land and Buildings
Plant
Machinery
Stock
Amount (in $)
2,00,000
and 4,00,000
Sundry Debtors
Bills Receivable
Cash at Bank
2,00,000
2,00,000
10,000
10,000
10,20,000

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