Question

Current Assets 3,00,000; Inventories * 60,000; Working Capital 2,52,000. Calculate Quick Ratio.​

Answer 1

$\sf\red{ Liquid \: assets = Current \: assets - Inventories}$

$\implies$$\sf{3,00,000-60,000}$

$\implies$$\sf{2,40,000}$

$\sf\red{Current \: liabilities = Current \: assets - Working \: capital}$

$\implies$$\sf{3,00,000-2,52,000}$

$\implies$$\sf{48,000}$

$\sf\red{Liquid \: ratio = \frac{liquid \: assets}{current \: liabilities} }$

$\implies$$\sf{\frac{2,40,000}{48,000}}$

$\implies$$\sf{5:1}$