Question

Xolo Ltd.'s Liquidity Ratio is 2.5 : 1. Inventory is 6,00,000. Current Ratio is 4: 1. Find out the Current Liabilities.​

Answer 1

Answer:

current ratio =current assets \current liability=4/1

quick ratio=quick assets /current liability=2.5/1

let the current liability be=x

current assets =4x

quick assets=2.5x

stock=current assets - quick assets

6,00,000=4x -2.5x

or, x=4,00,000

current liability = 4,00,000

Answer 2

$\sf\red{Current \: ratio= 4:1 ; Current \:assets = 4x}$

$\sf\red{ Liquid \: ratio = 2.5:1 ; Liquid \: assets = 2.5x}$

$\sf\red{Liquid \: assets = Current \: assets - Inventories}$

$\implies$$\sf{2.5x = 4x -6,00,000}$

$\implies$$\sf{1.5x =6,00,000}$

$\implies$$\sf{x = \frac{6,00,000}{1.5}}$

$\implies$$\sf{Current \: liabilities\: (x) =4,00,000}$