Q.2 The J Company's recent Balance sheet is as follows: Liabilities Amount Assets Amount Equity capital (Rs.10 per share) 60,000 Net Fixed assets 150000 Retained Earnings 20,000 Current assets 50000 10% Long term debt 80,000 Current Liabilities 40,000 200,000 200,000 The company's total assets turnover ratio based on sales is 4.0. Its fixed operating costs are Rs.100,000. Its variable operating costs ratio is 40%. Income tax rate is 40%. Required: a. Calculate three types of leverages. b. Determine likely level of EBIT if EPS is Rs. 3 and Rs.0