Total debt ratio-cash ratio-acid test ratio

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Reference no: EM13338451

Following items are taken out of Balance Sheet of A&B CoLtd.

a) Cash Rs. 20,000

b) Account receivable Rs. 100,000

c) Account payable Rs. 350,000

d) Notes payable Rs. 250,000

e) Inventory Rs. 300,000

f) Long term debt Rs. 500,000

g) Furniture Rs.1,500,000

h) Common Stock Rs 5,00,000

i) Retained Earnings Rs.3,20,000

j) Earning before interest and tax Rs 600,000

k) Company paid interest Rs.140,000

From the given data find out following ratios:

1. Total debt ratio

2. Cash Ratio

3. Acid test Ratio

4. Current ratio

5. Interest Coverage Ratio

Reference no: EM13338451

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