πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!


    Question

    Calculate Capital Gearing Ratio of the

    company? Read the following information to answer the below questions: Β  Net Sales = 40,00,000 (20 % GP Element) out of which 40% is on credit. Opening Inventories were 60 % of closing inventories. Opening Receivables are 120,000.Β  Β 
    A 0.61 Correct Answer Incorrect Answer
    B 1.02 Correct Answer Incorrect Answer
    C 1.20 Correct Answer Incorrect Answer
    D 0.97 Correct Answer Incorrect Answer

    Solution

    Capital Gearing Ratio: Preference Share Capital + Debentures + Other borrowed funds/Equity Share Capital + Reverses & Surplus - Losses 4,00,000+3,50,000+2,50,000 / 800,000+1,50,000+76,000-15000-27000 =10,00,000/9,84,000 =1.02

    Practice Next

    Relevant for Exams:

    ask-question