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Question
Current Liabilities = ₹ 3,00,000
Working Capital = ₹ 8,00,000
Inventory = ₹ 2,00,000
Calculate Quick Ratio.
Sum
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Solution
Current assets = Current liabilities + Working capital
= 3,00,000 + 8,00,000
= ₹ 11,00,000
Quick assets = Current assets – Inventory
= 11,00,000 – 2,00,000
= ₹ 9,00,000
Quick liability = Current liabilities – Bank O / D
= ₹ 3,00,000
Quick ratio = `"Quick assets" /"Quick liabilities"`
= `(9,00,000)/(3,00,000)`
= `3/ 1`
= 3: 1
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