Question

On the basis of following data, the liquid ratio of a company will be:

Current Ratio 5 : 3; Current Liabilities ₹ 75,000 and Inventory ₹ 25,000

पर्याय

• 1 : 1

• 2 : 1.8

• 3 : 2

• 4 : 3

Answer 1

4 : 3

Explanation:

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

`5/3` = `"Current Assets"/(75,000)`

Current Assets = `5/3 xx 75,000`

= ₹ 1,25,000

Liquid Assets = Current Assets − Inventory

= 1,25,000 − 25,000

= ₹ 1,00,000

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

= `(1,00,000)/(75,000)`

= 4 : 3