Reference no: EM132692456
Assets
Noncurrent assets 4 626 000
Tangible assets 4 326 000
Financial assets 300 000
Current assets 1 857 000
Inventories (all trading stock) 1 640 000
Trade and other receivables (all trade debtors) 110 000
Cash and cash equivalents 107000
Total assets 6 483 000
Equity and liabilities
Ordinary shareholders' equity 3 698 000
Ordinary share capital (R2.00 per share) 2 485 000
Retained income 1 213 000
Noncurrent liabilities 1 980 000
Mortgage loan: UCT bank (15% p.a.) 1 980 000
Current liabilities 805 000
Trade and other payables (all trade creditors) 705 000
SARS (income tax) 32 000
Current portion of loan 68 000
Total equity and liabilities 6 483 000
Problem 1: Explain and calculate Debt-equity ratio