| (1) Total Debt Ratio = Total Debt / Total Assets |
| Total Debt = (Accounts Payable + Notes Payable + Long-term debt) |
| Total Debt = (350,000 + 250,000 + 500,000) |
| Total Debt = Rs.1,100,000 |
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| Total Assets = (Cash + Accounts receivables + Invnentory + Furniture) |
| Total Assets = (20,000 + 100,000 + 300,000 + 1,500,000) |
| Total Assets = Rs.1,920,000 |
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| Total Debt Ratio = Rs.1,100,000 / Rs.1,920,000 |
| Total Debt Ratio = 0.57 |
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| (2) Cash Ratio = [(Cash Equivalents + Cash) / (Accruals + Accounts Payable + Notes Payable)] |
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| Cash Ratio = [(20,000) / (350,000 + 250,000)] |
| Cash Ratio = [(20,000) / 600,000] |
| Cash Ratio = 0.033 |
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| (3) Acid Test Ratio = [(Cash + Accounts receivables + short-term investments) / Current Liaibilities] |
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| Acid Test Ratio = [(20,000 + 100,000 ) / (350,000 + 250,000)] |
| Acid Test Ratio = [120,000 / 600,000] |
| Acid Test Ratio = 0.2 |
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| (4) Current Ratio = Current Assets / Current Liabilities |
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| Current Ratio = [(20,000 + 100,000 + 300,000) / (350,000 + 250,000)] |
| Current Ratio = [420,000 / 600,000] |
| Current Ratio = 0.7 |
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| (5) Interest Coverage Ratio = EBIT / Interest |
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| Interest Coverage Ratio = Rs.600,000 / Rs.140,000 |
| Interest Coverage Ratio = 4.26 |
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