1. Debt – Equity Ratio
Debt – Equity Ratio = Debt/Equity
Debt = Long Term Borrowings = Rs 12,00,0000 Equity = share Capital + Reserve and Surplus
= 10,00,000 + 9,00,000 = Rs. 19,00,000
2. Working Capital Turnover Ratio Working Capital Turnover Ratio
Revenue from Operations = Rs.18,00,000 Working capital = Current Assets – Current Liabilities
= 18,00,000 – 5,00,000 = Rs. 13,00,000
3. Trade Receivables Turnover Ratio
Trade Receivables Turnover Ratio
Net credit sales = Rs. 18,00,000 Avereagre Trade Receivables
= Rs.9,00,000
Notes:
1. Revenue from Operations are assumed to be revenue generated from credit sales.
2. The amount of trade receivables given in the Balance Sheet is assumed to be Average Trade Receivables.