Question

Quick Ratio is 1.5, Current Assets 1,00,000, Current Liabilities 40,000. Calculate value of Stock​

Answer 1

Answer:

QR = LA / CL

1.5 = LA / 40,000

LA= 40,000×1.5 =60,000

stock = CA - LA

= 1,00,000 - 60,000 = 40,000

stock 40,000

Answer 2

Given:

Quick Ratio: 1.5

Current Assets: 1,00,000

Current Liability: 40,000

To find:

Value of the stock.

Solution:

Quick Ratio: 1.5

Current Assets: 1,00,000

Current Liability: 40,000

The formula for quick ratio is

$Quick \: Ratio = \frac{Liquid Assets}{Current Liability}$

$1.5 = \frac{Liquid Assets}{40000}$

$1.5 \times 40000 = Liquid \: Assets$

$Liquid \: Assets = 60000$

Now,

$Stock = Current \: Assets - Liquid \: Assets$

Adding the values,

$Stock = 100000 - 60000$

$Stock = 40000$

Therefore, the value of the stock is 40,000.