Practical Problem 13
Current Liabilities = ₹ 3,00,000
Working Capital = ₹ 8,00,000
Inventory = ₹ 2,00,000
Calculate Quick Ratio.
SOLUTION:
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 – 0
= ₹ 3,00,000
Quick ratio = Quick Assets ÷ Quick Liabilities
∴ Quick Ratio =900000/300000
∴ Quick Ratio =3/1
∴ Quick Ratio =3:1