You are given the following information:
Cash 18,000
Debtors 1,42,000
Closing stock 1,80,000
Bills payable 27,000
Creditors 50,000
Outstanding expenses 15,000
Tax Payable 75,000
Calculate :
(i) Current ratio
(ii) Liquidity ratio n
Answers
Answer:
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Explanation:
Current assets = Stock + Debtors +BR + Advance tax + Cash
= 100000 + 80000 + 20000 + 8000 + 60000
= 268000
Current Liabilities = Creditors + BP + Bank OD
= 120000 + 80000 + 8000
= 208000
Quick assets = Current assets - stock
= 268000 - 100000
= 168000
Current ratio = Current Assets / Current Liabilities
= 268000/208000
= 1.28
Quick ratio = Quick assets / Current Liabilities
= 168000/200000
= 0.84
Answer:
Current assets Stock + Debtors +Bill Receivable + Advance
tax + Cash
= 100000 80000 + 20000 +
8000+ 60000
= 268000
Current Liabilities = Creditors + Bill payable + Bank Outstanding
= 120000 80000 + 8000
= 208000
Quick assets = Current assets - stock
= 268000-100000
= 168000
Current ratio = Current Assets / Current Liabilities
= 268000/208000
= 1.28
Quick ratio = Quick assets / Current Liabilities
= 168000/200000
= 0.84
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