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Atio.11. Calculate Liquid Ratio from the following:Current LiabilitiesCurrent Assets00)InventoryPrepaid ExpensesTrade Receivables₹1,50,0002,40,00075,00015,00090,000​

Answer»

Answer:

CURRENT RATIO = Current ASSET / Current liabilities

= 80000/50000 = 1.6

Quick ratio = Quick assets / Current liabilities

= 60000/ 50000 = 1.2

Current Assets = Trade receivables + Cash in HAND + Cash at Bank + Inventories + Advance Tax

= 30000 + 10000 + 10000 + 20000 + 1000 = 80000

Quick Assets = Current Assets - Inventories = 80000-20000 = 60000

Current Liabilities = 50000.



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