The Current Ratio if Inventory is Rs 6 00 000 Liquid Assets Rs 24 00 000 Quick Ratio 2 1 n...........

Finance (Phase -I & II) Others

The Current Ratio if:

Inventory is Rs 6,00,000; Liquid Assets Rs 24,00,000; Quick Ratio 2:1.

2.5 :1

2. :1

3 :1

None of the above

Quick Ratio:

Quick or Liquid Assets/Current Liabilities

2= 24,00,000/Current Liabilities

Current Liabilities = 12,00,000

Current Assets = Liquid Assets + Inventory

=24,00,000 + 6,00,000= 30,00,000/-

Current Ratio =Current Assets/Current Liabilities

=30,00,000/12,00,000=2.5 :1

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