1.

(i) A company is having a current ratio of 3 : 1. Its current liabilities are Rs 90,000. The accountant of the firm is interested in maintaining it to its standard ratio by purchasing certain assets on credit. Find out the value of asset to be purchased. (ii) A company is having its operating ratio equals to 80%. Find out its operating profit ratio.

Answer»

(i) A company is having a current ratio of 3 : 1. Its current liabilities are Rs 90,000. The accountant of the firm is interested in maintaining it to its standard ratio by purchasing certain assets on credit. Find out the value of asset to be purchased.

(ii) A company is having its operating ratio equals to 80%. Find out its operating profit ratio.



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