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Accounting Ratios 3.35

II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets— Property, Plant and Equipment 22,00,000
2. Current Assets
(a) Inventories 8,00,000
(b) Trade Receivables 3,00,000
(c) Cash and Cash Equivalents 1,50,000
(d) Short-term Loans and Advances 50,000
Total 35,00,000

Total Assets ` 35,00,000
Solution: Total Assets to Debt Ratio = = = 3.5 : 1.
Debt ` 10,00,000
Illustration 34.
From the following Balance Sheet of Times Ltd. as at 31st March, 2024, compute Return
on Capital Employed or Return on Investment:
Particulars Note No. `

I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 13,00,000
(b) Reserves and Surplus (2,50,000)
2. Non-Current Liabilities
Long-term Borrowings 5,00,000
3. Current Liabilities
(a) Trade Payables 1,00,000
(b) Other Current Liabilities 70,000
(c) Short-term Provisions 30,000
Total 17,50,000
II. ASSETS
1. Non-Current Assets
(a) Property, Plant and Equipment and Intangible Assets:
—Property, Plant and Equipment 11,20,000
(b) Non-current Investments (Trade) 2,00,000
2. Current Assets
(a) Inventories 1,70,000
(b) Trade Receivables 1,40,000
(c) Cash and Cash Equivalents 1,20,000
Total 17,50,000
Note: Net Profit for the year before interest and tax is ` 4,65,000.
Solution:
Net Profit before Interest and Tax
Return on Capital Employed =  100
Capital Employed
` 4,65,000
= 100 = 30%.
` 15,50,000