Question

current ratio and quick ratio of the company are 3:1 and 2:1 respectively. current liability is Rs. 50,000 what will be the value of inventory?

Answer 1

Answer:

50,000*3 =1,50000

Explanation:

current ratio current asset/liability

Answer 2

Answer:

The correct answer of this question is  $ $50,000$

Explanation:

Given - Current ratio and quick ratio of the company are 3:1 and 2:1.

To Find - What will be the value of inventory?

Current ratio of the company is  =

Current Assest / current liability = $\frac{3}{1}$

Current liability is Rs. $50,000$

Put the value of liability is

Current Assest / $50,000$  = $\frac{3}{1}$  

Current Asset  $50,000$ × $3$ = $150,000$

Current Asset = $ $150,000$

Quick Ratio = Quick Assest / current liability = $\frac{2}{1}$

Quick Assest / $50,000$ = $\frac{2}{1}$

Quick Asset = $50,000$ × $2$

= $100,000$

Quick Asset = $100,000$

Quick Asset = Current Asset - Inventory

$50,000$ = $100,000$ - Inventory

Inventory =  $100,000$ - $50,000$

Inventory = $50,000$

∴ The value of the Inventory is $ $50,000$

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