Question

Current assests of company 18 00 000 current ratio 3.1 and the liquid ratio is 1.1 calcluate current liabilities and inventory

Answer 1

Answer:

Current liabilities = 6,00,000

Inventory = 12,00,000

Explanation:

Given :

Current assests = Rs 18,00,000

Current ratio = 3 : 1

Liquid ratio = 1 : 1

To find :

Calcluate current liabilities and inventory

Solution :

Current ratio = 3 : 1

$\rm{Current \: ratio= \dfrac{Current \: Assets}{Current \: Liabilities}}$

Let,

Current liabilities = x

$\rm{Current \: ratio= \dfrac{Current \: Assets}{Current \: Liabilities} = \dfrac{3}{1}}$

$\rm{Current \: ratio= \dfrac{18,00,000}{x} = \dfrac{3}{1}}$

⇒ 3x = 18,00,000

⇒ x = 18,00,000 / 3

⇒ x = 6,00,000

Current liabilities = 6,00,000

Liquid ratio =

$\rm{Liquid \: ratio = \dfrac{Quick \: Assets}{Current \: Liabilities}}$

$\rm{Liquid \: ratio = \dfrac{Quick \: Assets}{Current \: Liabilities} = \dfrac{1}{1}}$

Current liabilities = 6,00,000

Quick assets = 6,00,000 × 1

⇒Quick assets = 6,00,000

★ Inventory =

Quick assets = Current assets - inventory

⇒ 6,00,000 = 18,00,000 - inventory

⇒ Inventory = 18,00,000 - 6,00,000

Inventory = 12,00,000

Therefore,

Current liabilities = 6,00,000

Inventory = 12,00,000