ANVY Ltd. has furnished the following ratios and information for the year end 31 st March, 2023: Equity share capital - 2,00,000 The relevant ratios…

Balance Sheet as on 31 st March, 2023 Liabilities ₹ Assets ₹ Equity share capital 2,00,000 Fixed assets 1,40,000 Current debt 60,000 Cash (balancing figure) 1,00,000 Long term debt 60,000 Inventory 80,000 3,20,000 3,20,000 Working Notes 1. Total debt = 0.60 × Equity share capital = 0.60 × ₹ 2,00,000 = 1,20,000 Further, Current debt to total debt = 0.50. So, current debt = 0.50 x 1,20,000 = 60,000, Long term debt = 1,20,000 -60,000 = 60,000 2. Fixed assets = 0.70 × Equity share Capital = 0.70 × ₹ 2,00,000 = 1,40,000 3. Total assets to turnover = 2.5 Times; Inventory turnover = 10 Times Hence, Inventory /Total assets = 2.5/10 = 1/4, Total assets = 3,20,000 Therefore Inventory = 3,20,000/4 = 80,000