Question

From the following information, calculate the following ratios-
(a) Net profit ratio
(b) Debt-Equity ratio
(c) Quick ratio
Information -
Paid up capital= Rs. 20,00,000
Capital reserve= Rs.2, 00,000
9% Debentures= Rs.8,00,000
Net revenue from operations= Rs. 14, 00,000
Gross profit=Rs.8,00,000
Indirect expenses= Rs.2,00,000
Current assets= Rs. 4,00,000
Current liabilities= Rs.3,00,000
Opening inventory= Rs.50,000
Closing inventory- 20% more than opening inventory​

Answer 1

Answer:

Quick ratio is calculated by dividing liquid current assets by total current liabilities. Liquid current assets include cash, marketable securities and receivables...