Illustration 4.3 From the following balance sheet you are required to calculate leverage ratios:

Balance Sheet Liabilities Rs. Assets Rss m w 300 Equity shares Buildings 2,50,00 @Rs. 100 each 3,00,000 Furniture 4000 7% Debentures 1,50,000 Machinery 2,10,000 Reserves & Surplus 80,000 Stock 60,000 Reserves & Surplus 80,000 Stock 60,000 Sundry creditors 30,000 Debtors 30,0 Bills payable 50,000 Cash balances 20,000 6,10,000 6,10,000