Question

Calculate current Ratio , Liquid ratio, Gross Profit
Ratio :
Current Assets ₹70,000,Current Liabilities
₹17,500 Revenue from operations ₹1,40,000
Inventory ₹ 30,000 cost of revenue from
operations ₹68,000
​

Answer 1

Explanation:

CR= CA/CL

= 70,000/17500

= 4/1

Therefore 4:1

QR= QA(LA)/ CL

= 40,000/ 17500

= 2.29/1

= 2.29:1

Working note.

QR or LA = CA - Inventory

= 70,000 -30,000

= 40,000.

Sorry for GP ratio I don't now answer