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Calculate Current Ratio from the following information:ParticularsAmount (Rs.)Inventories50,000Bill Receivable50,000Advance Tax4,000Cash30,000Bill Payable1,00,000Bank Overdraft4,000 |
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Answer» Current Ratio = \(\cfrac{Current \,Assets}{Current\,Liabilities}\) Current Assets = Inventories + Trade receivables + Advance tax + Cash and cash equivalents = Rs 50,000 + Rs 50,000 + Rs 4,000 + Rs 30,000 = Rs 1,34,000 Current Liabilities = Trade Payables + Short term borrowings = Rs 1,00,000 + Rs 4,000 = Rs 1,04,000 Current ratio = \(\cfrac{Rs \,1.34,000}{Rs \,1,04,000}\) = 1.29 : 1 |
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