Read the following information and answer the following question.

Calculate the total assets to debt ratio.

2.8:1

The correct answer is option 2- 2.8:1.

* Capital employed = Shareholder's funds + Long term debts
   40,00,000 = 24,00,000 + long term debts
   Long term debts = ₹16,00,000

* Total assets = Shareholder's funds + long-term debts + current liabilities
                       = 24,00,000 + 16,00,000 + 4,80,000
                       = ₹44,80,000

Total assets to Debt Ratio = Total assets/Long-term debts
                                           = 44,80,000/16,00,000
                                           = 2.8:1