Question

35. A Company's Quick Ratio is 1.5 : 1; Current Liabilities are *2,00000 and
Inventory is 1,80,000. Current Ratio will be :​​

Answer 1

Answer:

explained as below:

Explanation:

formula of quick ratio= (current assets-inventory)/ current liability

let current assets is equal to "x"

1.5= (x-1,80,000)/2,00,000

1.5×2,00,000 = x-1,80,000

3,00,000 = x-1,80,000

x= 3,00,000 + 1,80,000

x= 4,80,000

now current ratio formula = current assets/ current liability

current ratio= 4,80,000/2,00,000

current ratio = 2.4 : 1