SOLUTION
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 = 70,00,000 / 40,00,000
= 7: 4 or 1.75: 1