Based on following information of a company as at 31 March, 2017. Answer question.
|
Items |
Rs. |
|
Inventory |
1,00,000 |
|
Total Current Assets |
1,60,000 |
|
Shareholders Fund |
4,00,000 |
|
13% Debentures |
3,00,000 |
|
Current liabilities |
1,00,000 |
|
Net Profit before Tax |
3,51,000 |
|
Cost of Revenue from operations |
5,00,000 |
Calculate Liquid Assets and Quick Ratio of the Company.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹60,000; 0.6 : 1
Liquid Assets = Current assets – Inventory
= 1,60,000 – 1,00,000
= 60,000
Liquid Ratio = Liquid Assets / Current Liabilities
= 60,000 / 1,00,000
= 0.6 : 1