Question

4,000
5,000
wonding Expenses
Cash Equivalents
Ans Current Ratio 2.5:1]
0.2. From the following compute (a) Current Ratio (b) Quick Ratio :
₹
Current Investments
Non Current Investments
Inventories (Including Loose Tools of 40,000)
Tade Receivables
Short term Loans and Advances
Trade Payables
Short term Borrowings
Long term Borrowings
Prepaid Insurance
Advance Payment of Tax
Cash and Cash Equivalents
80,000
2,00,000
4,50,000
3,30,000
10,000
1.80,000
60,000
3,00,000
18,000
20,000
28.000
please solve this question please please please please please please please please please​

Answer 1

Answer:

Current ratio = Current asset / Current liabilities

= 80000/50000 = 1.6

Quick ratio = Quick assets / Current liabilities

= 60000/ 50000 = 1.2

Current Assets = Trade receivables + Cash in hand + Cash at Bank + Inventories + Advance Tax

= 30000 + 10000 + 10000 + 20000 + 1000 = 80000

Quick Assets = Current Assets - Inventories = 80000-20000 = 60000

Current Liabilities = 50000.