Read the following information and answer the question.

Calculate the total assets to debt ratio.

2.65:1

The correct answer is option 1- 2.65:1.

* Total assets = Goodwill + other current assets + current assets
                     = 5,00,000 + 22,00,000 + 18,00,000
                     = ₹45,00,000

* Long term debts = Debentures + loan from bank
                              = 10,00,000 + 7,00,000
                              = ₹17,00,000

Total assets to Debt Ratio = Total assets/Long-term debts
                                            =  45,00,000/ 17,00,000
                                            = 2.65:1