Answer 1

Total Assets to Debt Ratio = `"Total Assets"/"Long term Debt"`

Working Capital = Current Assets – Current Liabilities
5,00,000 = 25,00,000 – Current Liabilities
Current Liabilities = Rs 20,00,000
Long Term Debts = Total Debt – Current Liabilities
= 60,00,000 – 20,00,000
= Rs 40,00,000
Total Assets = Total Liabilities = Total Debt + Shareholders’ Funds
= 60,00,000 + 10,00,000
= Rs 70,00,000

Total Assets to Debt Ratio = `7000000/4000000 = 7 : 4` or 1.75 : 1.