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Accountancy
Accounting Ratios
A Company's Quick Ratio is 1.5 : 1; Current Liabilities are Rs2,00,000 and Inventory is Rs1,80,000. Current Ratio will be :
0.9 : 1
1.9 : 1
1.4 : 1
2.4 : 1
Quick Ratio= (Current Assets-Inventory)/Current Liabilities 1.5/1=(Current Assets- 1,80,000)/2,00,0001.5/1 x 200000 = Current assets - 180000300000 = current assets - 180000Current assets = 300000 + 180000 Current Assets=4,80,000 Current Ratio= 4,80,000/2,00,000 =2.4:1