Question

Inventory ₹ 3,00,000 (excluding loose tools ₹ 90,000); Trade Receivables ₹ 1,10,000; Trade Payables ₹ 1,80,000; Prepaid Expenses ₹ 40,000 and Goodwill is ₹ 45,000. Current Ratio will be ______.

विकल्प

• 2.75 : 1

• 2.5 : 1

• 3 : 1

• 3.25 : 1

Answer 1

Inventory ₹ 3,00,000 (excluding loose tools ₹ 90,000); Trade Receivables ₹ 1,10,000; Trade Payables ₹ 1,80,000; Prepaid Expenses ₹ 40,000 and Goodwill is ₹ 45,000. Current Ratio will be 2.5 : 1.

Explanation:

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

Current Assets = Inventory + Trade Receivables + Prepaid Expenses

= 3,00,000 + 1,10,000 + 40,000

= ₹ 4,50,000

Current Liabilities = Trade Payables = ₹ 1,80,000

Current Ratio = `(4,50,000)/(1,80,000)`

= 2.5 : 1