Question

Calculate Current Ratio from the following:
Working capital * 1,50,000 ; Total debts 5,00,000 ; Long-term debts 34,00,000 ; Inventory * 70,000 ;
Prepaid expenses 5,000.​

Answer 1

Explanation:

Cost of Goods Sold = Opening Stock + Purchases + Carriage Inwards − Closing Stock

= 20,000 + 50,000 + 5,000 − 10,000 = 65,000