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From the following Balance Sheet and other information, calculate following ratios: 

1. Debt-Equity Ratio 

2. Working Capital Turnover Ratio 

3. Trade Receivables Turnover Ratio

Additional Information: Revenue from Operations Rs 18,00,000 (Debt-Equity Ratio 0.63 : 1; Working Capital Turnover Ratio 1.39 times; Trade Receivables Turnover Ratio 2 times)

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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 


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.

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