Question
Calculate the Proprietary ratio of the company, from the
above information. Refer to the following information to answer the next 4 questions (Q1 to Q4)Solution
Proprietary Ratio = Shareholders’ equity/ Total Assets  Shareholders’ funds = Equity share capital + Capital reserve + Profit& Loss a/c                                    = 40,000 + 8,000 + 12,000                                    = 60,000 Total assets = 1,20,000 Proprietary Ratio = 120,000/60,000                        = 0.50
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