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
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.