Accountancy HW

1. Give formulae for the following:

a. Total Assets to Debt Ratio
b. Proprietary Ratio
c. Interest coverage ratio
2. Net Profit after interest and tax ₹1,20,000; Rate of Income Tax @40%; 15% Debentures
₹1,00,000; 12% Mortgage Loan ₹1,00,000. Calculate Interest Coverage Ratio.
3. Calculate Interest Coverage Ratio if Net Profit after tax is ₹4,25,000, Tax is ₹75,000 and
Interest on Long-term Funds is ₹1,25,000.
4. Calculate Proprietary ratio, if Total Assets to Debt Ratio is 2 : 1. Debt is ₹5,00,000.
Equity Shares Capital is 0.5 times of debt. Preference Share Capital is 25% of equity
share capital. Net Profit before tax is ₹10,00,000 and rate of tax is 40%.
5. What are Activity Ratios? What are the different types of activity ratios.