How do you calculate balances of retained income and ordinary share capital when you are only given ratios?

To calculate the balances of retained income and ordinary share capital when only given ratios, you would need to know the total equity of the company and the specific ratios provided.

1. Calculate the total equity of the company by adding the retained income and ordinary share capital together.

2. Use the given ratios to determine the proportion of total equity that is attributed to retained income and ordinary share capital.

3. Multiply the total equity by the ratio for retained income to find the balance of retained income.

4. Multiply the total equity by the ratio for ordinary share capital to find the balance of ordinary share capital.

By following these steps, you can calculate the balances of retained income and ordinary share capital based on the given ratios.