Question
From the following information, calculate Proprietary Ratio:

Answer

Total Assets = Fixed Assets + Current Assets + Investments
= 3,75,000 + 1,50,000 + 2,25,000 = 7,50,000
Shareholders’ Funds = Equity Share Capital + Preference Share Capital + Reserves and Surplus
= 3,00,000 + 1,50,000 + 75,000 = 5,25,000
$\text{Proprietary Ratio}=\frac{\text{Shareholder's Fund}}{\text{Total Assets}}$
$=\frac{5,25,000}{7,50,000}=0.70:1$

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