What will be the quick ratio of the company if its current assets are ₹29,745 and the current ratio is 1.5:1, and inventories are ₹8,827?

1.05:1

The correct answer is option 2- 1.05:1.

* Current ratio = current assets / current liabilities
1.5:1 = 29,745/ current liabilities

Current liabilities = 29,745/1.5
                           = ₹19,830

* Liquid assets = current asset - inventory
                        = 29,745 - 8,827
                        = ₹20,918

Quick ratio = quick assets / current liabilities
                  = 20,918/19,830
                  = 1.05:1