Bunye Limited Has the Following Balances in the Statement of Financial

question 1

Multiple Choice

Bunye Limited has the following balances in the statement of financial position at 31 December 2019.
$\begin{array}{lr}& £ \\\text { Property, plant and equipment } & 423,000 \\\text { Trade payables } & 88,000 \\\text { Retained earnings } & 186,000 \\\text { Borrowings (all non-current liabilities) } & 150,000 \\\text { Inventory } & 29,000 \\\text { Bank overdraft } & 4,200 \\\text { Trade and other receivables } & 57,500 \\\text { Taxation payable } & 18,800 \\\text { Non-current asset investments } & 22,500 \\\text { Share capital } & 35,000 \\\text { Share premium } & 50,000\end{array}$ 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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