current assets264000, inventories57000, prepaid exp. 3000, current liability204000, trade payable12000, calculate the quick ratio
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Quick ratio = Liquid assets (Current Assets - inventories)
Current Liabilities = 3,00,000 - 60,000
75,000 (Working Note 1)
= 2,40,000
75,000
= 3.2:1
Working note number 1 - calculation of current liabilities Working capital = Current Assets - Current liabilities
Current liabilities = Current assets - Working capital. = 3,00,000 - 2,25,000 = 75,000.
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