On the basis of following information, answer the questions:

On the basis of above case, the liquid ratio is:

0.6:1

The correct answer is option 2- 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