Question

Debentures ₹ 80,000, Trade Payables ₹ 1,20,000, Trade Receivables ₹ 90,000, Prepaid Expenses ₹ 10,000, Inventory ₹ 2,00,000 and Goodwill is ₹ 60,000. Current Ratio will be ______.

विकल्प

• 1.5 : 1

• 2.5 : 1

• 3 : 1

• 1.8 : 1

Answer 1

Debentures ₹ 80,000, Trade Payables ₹ 1,20,000, Trade Receivables ₹ 90,000, Prepaid Expenses ₹ 10,000, Inventory ₹ 2,00,000 and Goodwill is ₹ 60,000. Current Ratio will be 2.5 : 1.

Explanation:

Current Assets = Trade Receivables + Prepaid Expenses + Inventory

= 90,000 + 10,000 + 2,00,000

= ₹ 3,00,000

Current Liabilities = Trade Payables = 1,20,000

Current Ratio = `"Current Assets"/"Current Liabilities"`

= `(3,00,000)/(1,20,000)`

= 2.5 : 1