**SOLUTION**

**Total Assets to Debt Ratio = Total Assets Long Term DebtWorking Capital = Current Assets – Current Liabilities5,00,000 = 25,00,000 – Current LiabilitiesCurrent Liabilities = Rs. 20,00,000Long Term Debts = Total Debt – Current Liabilities= 60,00,000 – 20,00,000= Rs. 40,00,000Total Assets = Total Liabilities = Total Debt + Shareholders’ Funds= 60,00,000 + 10,00,000= Rs. 70,00,000**

**Total Assets to Debt Ratio = 70,00,000 / 40,00,000**

= 7: 4 or 1.75: 1

= 7: 4 or 1.75: 1