Current ratio = 2.5 : 1 Current Liabilities = Rs. 1,60,000 Quick Ratio

1.	Current ratio = 2.5 : 1 Current Liabilities = Rs. 1,60,000 Quick Ratio = 1.5 : 1 Calculate value of current assets, quick assets & inventory.
Answer» Explanation: ★ Current Assets : Current Ratio = 2.5 : 1 Current Ratio = $\longrightarrow{\sf{\dfrac{Current \: Assets}{Current \: Liabilities} \: = \: \dfrac{2.5}{1}}}$ $\longrightarrow{\sf{\dfrac{Current \: Assets}{1,60,000} \: = \: \dfrac{2.5}{1}}}$ $\longrightarrow$ Current Assets = 1,60,000 × 2.5 $\longrightarrow$ 4,00,000 Current Assets = 4,00,000 __________________ ★ QUICK Assets : Quick Ratio = 1.5 : 1 Quick Ratio = $\sf{\longrightarrow{\dfrac{Quick \: Assets}{Current \: Liabilities} \: = \: \dfrac{1.5}{1}}}$ $\sf{\longrightarrow{\dfrac{Quick \: Assets}{1,60,000} \: = \: \dfrac{1.5}{1}}}$ $\longrightarrow$ Quick Assets = 1,60,000 × 1.5 $\longrightarrow$ 2,40,000 Quick Assets = 2,40,000 __________________ ★ INVENTORY : $\longrightarrow$ Quick Assets = Current Assets - Inventory $\longrightarrow$ Inventory = Current Assets-Quick Assets $\longrightarrow$ 4,00,000 - 2,40,000 $\longrightarrow$ 1,60,000 Inventory = 1,60,000 Therefore, Current Assets = 4,00,000, Quick Assets = 2,40,000 and Inventory= 1,60,000

Current ratio = 2.5 : 1 Current Liabilities = Rs. 1,60,000 Quick Ratio = 1.5 : 1 Calculate value of current assets, quick assets & inventory.

Answer»

Explanation:

★ Current Assets :

Current Ratio = 2.5 : 1

Current Ratio =

$\longrightarrow{\sf{\dfrac{Current \: Assets}{Current \: Liabilities} \: = \: \dfrac{2.5}{1}}}$

$\longrightarrow{\sf{\dfrac{Current \: Assets}{1,60,000} \: = \: \dfrac{2.5}{1}}}$

$\longrightarrow$ Current Assets = 1,60,000 × 2.5

$\longrightarrow$ 4,00,000

Current Assets = 4,00,000

★ QUICK Assets :

Quick Ratio = 1.5 : 1

Quick Ratio =

$\sf{\longrightarrow{\dfrac{Quick \: Assets}{Current \: Liabilities} \: = \: \dfrac{1.5}{1}}}$

$\sf{\longrightarrow{\dfrac{Quick \: Assets}{1,60,000} \: = \: \dfrac{1.5}{1}}}$

$\longrightarrow$ Quick Assets = 1,60,000 × 1.5

$\longrightarrow$ 2,40,000

Quick Assets = 2,40,000

★ INVENTORY :

$\longrightarrow$ Quick Assets = Current Assets - Inventory

$\longrightarrow$ Inventory = Current Assets-Quick Assets

$\longrightarrow$ 4,00,000 - 2,40,000

$\longrightarrow$ 1,60,000

Inventory = 1,60,000

Therefore,