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Bunye Limited Has the Following Balances in the Statement of Financial

Question 17

Multiple Choice

Bunye Limited has the following balances in the statement of financial position at 31 December 2021.
£Praperty, plant and equipment423,000Trade payables88,000Retained earnings186,000Earrawings (all nan-current liabilities) 150,000Inentory29,000bank overdraft4,200Trade and ather receivables57,500Taxation payable18,800Nan-current asset irvestments22,500share iapital35,000Share premium50,000\begin{array}{l}\begin{array} {lll } &£\\\text {Praperty, plant and equipment}&423,000\\\text {Trade payables}&88,000\\\text {Retained earnings}&186,000\\\text {Earrawings (all nan-current liabilities) }&150,000\\\text {Inentory}&29,000\\\text {bank overdraft}&4,200\\\text {Trade and ather receivables}&57,500\\\text {Taxation payable}&18,800\\\text {Nan-current asset irvestments}&22,500\\\text {share iapital}&35,000\\\text {Share premium}&50,000\\\end{array}\end{array} Based on the above figures, what is the debt ratio?


A) 0.34:1
B) 0.49
C) 0.57
D) 2.04:1

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