Question
Current liabilities $= ₹ 3,00,000$
Working capital $= ₹ 8,00,000$
Inventory $= ₹ 2,00,000$
Calculate Quick ratio.
Working capital $= ₹ 8,00,000$
Inventory $= ₹ 2,00,000$
Calculate Quick ratio.
✓
Answer
Current assets $=$ Current liabilities $+$ Working capital
$= 3,00,000 + 8,00,000$
$= ₹ 11,00,000$
Quick assets = Current assets – Inventory
$= 11,00,000 – 2,00,000$
$= ₹ 9,00,000$
Quick liability = Current liabilities – Bank O/D $= ₹ 3,00,000$
$\text { Quick ratio }=\frac{\text { Quick assets }}{\text { Quick liabilities }}$
$=\frac{9,00,000}{3,00,000} $
$=\frac{3}{1} $
$ =3: 1$
$= 3,00,000 + 8,00,000$
$= ₹ 11,00,000$
Quick assets = Current assets – Inventory
$= 11,00,000 – 2,00,000$
$= ₹ 9,00,000$
Quick liability = Current liabilities – Bank O/D $= ₹ 3,00,000$
$\text { Quick ratio }=\frac{\text { Quick assets }}{\text { Quick liabilities }}$
$=\frac{9,00,000}{3,00,000} $
$=\frac{3}{1} $
$ =3: 1$
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