Compute Debt Equity Ratio using the following information:
Particulars | Amount (RS.) |
Total Assets | 3,50,000 |
Total Debts | 2,50,000 |
Current Liabilities | 80,000 |
b) Debt Equity Ratio = Debts/ Equity
Debt = Total Debt – CL
= 2,50,000 – 80,000 = 1,70,000
Equity = Total Assets – Total Debts
= 3,50,000 – 2,50,000 = 1,00,000
Debt Equity Ratio = 1,70,000/1,00,000=1.7:1