Question

current liabilities of. a company are 350000 it's current ratio is 3:1 and quick ratio 1.75:1 ccaulate the value of current asset liquid asset and Inventory​

Answer 1

Answer:

• Current Asset = 10,50,000
• Liquid Asset = 6,12,500
• Inventory = 4,37,500

Explanation:

$\sf{\longrightarrow{Current\:Ratio =\dfrac{Current \: Assets}{Current \: Liabilities} \: = \: \dfrac{3}{1}}}$

Current Liabilities = 3,50,000

Current Ratio =

$\sf{\longrightarrow{\dfrac{Current \: Assets}{3,50,000} \: = \: \dfrac{3}{1}}}$

Current Assets = 3,50,000 × 3

Current Assets = 10,50,000

$\sf{\longrightarrow{\dfrac{1050000}{3,50,000} \: = \: \dfrac{3}{1}}}$

Quick Ratio =

$\sf{\longrightarrow{\dfrac{Quick \: Assets}{Current \: Liabilities} \: = \: \dfrac{1.75}{1}}}$

Current Liabilities = 3,50,000

Quick Ratio =

$\sf{\longrightarrow{\dfrac{Quick \: Assets}{350000} \: = \: \dfrac{1.75}{1}}}$

Quick Assets = 3,50,000 × 1.75

Quick Assets = 6,12,500

Quick Assets = Current Assets - Inventory

6,12,500 = 10,50,000 - Inventory

Inventory = 10,50,000 - 6,12,500

Inventory = 4,37,500

Therefore,

• Current Asset = 10,50,000
• Liquid Asset = 6,12,500
• Inventory = 4,37,500