Question

A Company's liquid assets are 6,00,000, Inventory is 1,50,000 and its current liabilities
are 4,00,000. Subsequently, it purchased goods for 1,00,000 on credit. Quick ratio ​

Answer 1

Answer:

ANSWER IS 1.5:1 THIS IS CORRECT ANSWER IF IT'S WRONG PLS LIKE ME

Answer 2

Given:

A Company's liquid assets are 6,00,000, Inventory is 1,50,000 and its current liabilities  are 4,00,000. Subsequently, it purchased goods for 1,00,000 on credit.

To Find:

Find the Quick ratio ​

Solution:

The formula for quick ratio is liquid assets by current liability,

$Q_{R}=\frac{L_{a}}{C_{l}}$

Now from the given values,

Liquid assets = currents assets -inventory

Since the amount of liquid assets is already given to us any purchase of inventory will not further affect the number of liquid assets. According to the question goods of Rs100000 have been purchased on credit and this will increase both the amount of inventory and current liability

so the new current liability is equal to 400000+100000=500000

$Q_{R}=\frac{600000}{500000}\\=1.2$

Hence, the quick ratio is 1.2.