Current Assets Rs. 3,00,000; Inventories Rs. 60,000; Working Capital Rs. 2,52,000. Calculate Quick Ratio.

SOLUTION

Current Liabilities = Current Assets − Working Capital
= 3,00,000 − 2,52,000
= 48,000


Quick Assets = Current Assets − Stock

= 3,00,000 − 60,000
= 2,40,000

Current ratio = Current assets / Current liabilities
= 2,40,000 / 48,000
= 5: 1


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