Advertisements
Advertisements
Question
Quick Ratio 1.6 : 1; Liquid Assets ₹ 4,80,000; Inventory ₹ 1,50,000. Calculate Current Ratio.
Numerical
Advertisements
Solution
Quick Ratio = `"Liquid Assets"/"Current Liabilities"`
1.6 = `(₹ 4,80,000)/"Current Liabilities"`
Current Liabilities = `(₹ 4,80,000)/1.6`
= ₹ 3,00,000
Current Assets = Liquid Assets + Inventory
= ₹ 4,80,000 + ₹ 1,50,000
= ₹ 6,30,000
Current Ratio = `"Current Assets"/"Current Liabilities"`
= `(₹ 6,30,000)/(₹ 3,00,000)`
= 2.1 : 1
shaalaa.com
Is there an error in this question or solution?
