Accountancy, asked by fireflyformy, 12 days ago

Current ratio 4:1, Current assets Rs. 60,000 quick assets are 2:5:1. Calculate inventory.

Answers

Answered by Gamingboyz

Answer:

Current liabilities = 14,062.5

Current Assets = 56,656.25

Explanation:

Given:

Current ratio = 4.1

Quick ratio = 2.5 : 1

Stock = 22,500

Computation:

Current ratio = Current assets / Current liabilities

4.1 = Current assets / Current liabilities

Current assets = 4.1 Current liabilities

Quick ratio = Quick assets / Current liabilities

2.5 = (Current assets - Stock) / Current liabilities

2.5 = (4.1 Current liabilities - Stock) / Current liabilities

2.5 Current liabilities = 4.1 Current liabilities - 22,500

22,500 = 4.1 Current liabilities - 2.5 Current liabilities

22,500 = 1.6 Current liabilities

Current liabilities = 14,062.5

Current Assets = 56,656.25

Explanation:

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