Calculate debt-equity ratio

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Reference no: EM13259764

From the following you are reuired to comment upon the long-termas well as short-term solvency of the company .

Liabilities                     Rs                                Assets                               Rs

Sharecpital               5,00,000                       fixedassets                       6,00,000

Fixedliabilities          2,50,000                      liquidassets                            3, 00,000

Current liabilities        2,50,000                     stock intrade                           1, 00,000

TOTAL                     10,00,000                     TOTAL                                    10,00,000

HINT: calculate debt-equity ratio, fixed assets ratio,proprietary ratio. Current ratio and liquidity ratio.

Reference no: EM13259764

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