The following are extracts taken from the summarized balance sheet of Horizon Ltd as of 30 June 2018: Equity Ordinary share capital $750,000 Reserves $450,000 Non-current liabilities 8% Debentures $900,000 What is the gearing ratio?

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 67BE
icon
Related questions
Question
100%

Can you solve this general accounting problem with appropriate steps and explanations?

The following are extracts taken from the summarized balance sheet of Horizon Ltd as of 30
June 2018:
Equity
Ordinary share capital $750,000
Reserves
$450,000
Non-current liabilities
8% Debentures
$900,000
What is the gearing ratio?
Transcribed Image Text:The following are extracts taken from the summarized balance sheet of Horizon Ltd as of 30 June 2018: Equity Ordinary share capital $750,000 Reserves $450,000 Non-current liabilities 8% Debentures $900,000 What is the gearing ratio?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub