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| 1. |
Current ratio=2:1 working capital = 40000 stock = 30000 calculate current assets, current liabilities, quick ratio |
| Answer» RATIO = current ASSET / current liabilities LET current asset = CA current liabilities = CL 2/1 = CA/CL cross multiply CA = 2 CL --------------------------------------------------------------------- working CAPITAL = CA - CL 40000 = CA- CL substitute CA = 2 Cl so , 40000 = 2 CL - CL 40000 = Cl CL = 40000/ 1 CL = 40000 CA = 2 CL CA = 2* 40000 CA = 80000 ------------------------------------------------------------------------- Quick asset = (CA - stock) / CL = ( 80000 - 30000) / 40000 = 50000 / 40000 = 5/4 Quick asset = 5/4 | |