Calculate the following ratios from the given Balance Sheet:

(a) Current ratio (b) Fixed assets to Net worth ratio (c) Debt equity ratio (d) Return on capital employed.

Balance Sheet

Liabilities Amount Assets Amount

600 shares of Rs 100 each 60,000 Land 40,000

General Reserve 35,000 Plant 20,000

Dividend Equalisation reserve 5,000 Machines 27,500

Long term loans 20,000 Investments 25,000

Bills payable 30,000 Inventories 30,000

Provision for tax 5,000 Bills receivable 13,500

Profit and Loss a/c 1,000 Cash and Bank 12,000

Current year 20,000 21000 Preliminary expenses 8,000

176000 176000