Question: 2. Using the following information calculate the unknown figure in the table: Long term debt to net worth (equity) ratio: 0.5 to 1 Total assets

2. Using the following information calculate the unknown figure in the table: Long term debt to net worth (equity) ratio: 0.5 to 1 Total assets turnover ratio 2.5 times Average collection period (DSO):18 Days Inventory turnover ratio: 9 times Gross profit margin: 10% Acid test ratio: 1 to 1

Cash

Account Receivable

Inventory

Plant and equipment

-

-

-

-

Notes payable

Long term debt

Common stock

Retained Earnings

Rs. 100,000

-

Rs. 100,000

Rs. 100,000

Total Assets

-

Total Liabilities & Equity

-

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