Saved Bookmarks
| 1. |
From the following information of Green Star Ltd. Calculate debt to equity ratio: trade payable 3000000, other current liabilities (12.5% current asset) total debts 2800000, other qui k assets 80000, prepaid expenses 20000, trade receivables 300000, net fixed assets 3000000, long term loans and advance 160000, non current investment 40000, opening inventory 320000 |
|
Answer» debt to equity ratio = long term debt / equity = 2400000/1200000 = 2 times closing inventory = opening inventory + 25% of opening inventory = 320000+80000 = rs 400000 total liability = total assets = quick assets+ prepaid expense+ trade receivables+ net fixed assets + long term loans and advances+ non current investments+ closing inventory = 80000+20000+300000+3000000+160000+40000+400000 = rs. 4000000 euity= total liability - total debt = 4000000 - 2800000 = rs. 1200000 current assets= quick assets+ prepaid expenses + trade receivables + closing inventory = 80000+20000+300000+400000 = rs. 800000 other current liabilities = 12.5% of current assets = rs. 100000 current liabilities= trade payables + other current liabilities = 300000 + 100000 = rs. 400000 long term debts= total debts - current liabilities = 2800000-400000 = rs. 2400000 |
|