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7. On the basis of following data, a Company's Total Assets-Debt Ratio will be: Working Capital 2,70,000; Current Liabilities 30,000; Fixed Assets 4,00,000; Debentures 2,00,000; Long Term Bank Loan 80,000. (A) 37% (B) 40% (C) 45% (D) 70%?
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7. On the basis of following data, a Company's Total Assets-Debt Ratio...
To calculate the Total Assets-Debt Ratio, we need to determine the total assets and total debt of the company.

1. Calculate the Total Assets:
Total Assets = Working Capital + Fixed Assets
Total Assets = 2,70,000 + 4,00,000
Total Assets = 6,70,000

2. Calculate the Total Debt:
Total Debt = Debentures + Long Term Bank Loan + Current Liabilities
Total Debt = 2,00,000 + 80,000 + 30,000
Total Debt = 3,10,000

3. Calculate the Total Assets-Debt Ratio:
Total Assets-Debt Ratio = (Total Assets / Total Debt) * 100
Total Assets-Debt Ratio = (6,70,000 / 3,10,000) * 100
Total Assets-Debt Ratio = 216.13

Therefore, the Total Assets-Debt Ratio is 216.13%.

Explanation:
The Total Assets-Debt Ratio is a financial ratio that measures the proportion of a company's total assets that are financed by debt. It indicates the extent to which a company relies on debt to finance its operations and investments.

In this case, the company's total assets amount to 6,70,000, which includes both working capital (2,70,000) and fixed assets (4,00,000). On the other hand, the company's total debt amounts to 3,10,000, which includes debentures (2,00,000), long-term bank loan (80,000), and current liabilities (30,000).

By dividing the total assets by the total debt and multiplying by 100, we get the Total Assets-Debt Ratio of 216.13%. This means that approximately 216.13% of the company's total assets are financed through debt.

It is important to note that the Total Assets-Debt Ratio can be interpreted differently based on the industry and company's financial goals. A higher ratio indicates a higher reliance on debt financing, which may increase the company's financial risk. On the other hand, a lower ratio indicates a lower reliance on debt financing, which may signify a more stable financial position.

In conclusion, the Total Assets-Debt Ratio for the given company is 216.13%.
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7. On the basis of following data, a Company's Total Assets-Debt Ratio...
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7. On the basis of following data, a Company's Total Assets-Debt Ratio will be: Working Capital 2,70,000; Current Liabilities 30,000; Fixed Assets 4,00,000; Debentures 2,00,000; Long Term Bank Loan 80,000. (A) 37% (B) 40% (C) 45% (D) 70%?
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7. On the basis of following data, a Company's Total Assets-Debt Ratio will be: Working Capital 2,70,000; Current Liabilities 30,000; Fixed Assets 4,00,000; Debentures 2,00,000; Long Term Bank Loan 80,000. (A) 37% (B) 40% (C) 45% (D) 70%? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about 7. On the basis of following data, a Company's Total Assets-Debt Ratio will be: Working Capital 2,70,000; Current Liabilities 30,000; Fixed Assets 4,00,000; Debentures 2,00,000; Long Term Bank Loan 80,000. (A) 37% (B) 40% (C) 45% (D) 70%? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 7. On the basis of following data, a Company's Total Assets-Debt Ratio will be: Working Capital 2,70,000; Current Liabilities 30,000; Fixed Assets 4,00,000; Debentures 2,00,000; Long Term Bank Loan 80,000. (A) 37% (B) 40% (C) 45% (D) 70%?.
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