ratio of 1.66 is more than two times to the norm of 0.75. The company has to think about reducing the excess liquidity. Illustration 20 Erom the following balance sheet of Balaji Industries Ltd., you are required to calculate debt equity ratio. Balance Sheet as at 31-12-1999 Liabilities Rs. Assets Rs. Share capital : 10,000 shares of Rs. 10 each Fixed assets 1,20,000 1,00,000 Current assets 12,000 80,000 General reserve P&LA/c 8,000 Debentures 30,000 Current liabilities 50,000 2,00,000 2,00,000

ratio of 1.66 is more than two times to the norm of 0.75. The company has to think about reducing the excess liquidity. Illustration 20 Erom the following balance sheet of Balaji Industries Ltd., you are required to calculate debt equity ratio. Balance Sheet as at 31-12-1999 Liabilities Rs. Assets Rs. Share capital : 10,000 shares of Rs. 10 each Fixed assets 1,20,000 1,00,000 Current assets 12,000 80,000 General reserve P&LA/c 8,000 Debentures 30,000 Current liabilities 50,000 2,00,000 2,00,000

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter2: Analysis Of Financial Statements

Section: Chapter Questions

Problem 10PROB

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