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Question
Current Assets ₹ 3,00,000; Inventories ₹ 60,000; Working Capital ₹ 2,52,000.
Calculate Quick Ratio.
Sum
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Solution
Current Liabilities = Current Assets − Working Capital
= 3,00,000 − 2,52,000 = 48,000
Quick Assets = Current Assets − Stock
= 3,00,000 − 60,000 = 2,40,000
`"Quick Ratio" = "Quick Assets"/"Current Liabilities" = 240000/48000 = 5:1`
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