Question

18. Quick Assets * 1,50,000; Inventory (Stock) * 40,000; Prepaid Expenses 10,000; Working Capital 1,20,000.
Calculate Current Ratio.​

Answer 1

Answer:

2.5 times

Explanation:

current asset=1,50,000+40,000+10,000=2,00,000

current liabilities=current asset-working capital

=2,00,000-1,20,000=80,000

current ratio=CA/CL=2,00,000/80,000=2.5times

Answer 2

Answer:

2.5 : 1

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