Read the following information and answer the question.

Following is the Balance Sheet of Titanic Ltd. as at March 31, 2022.

The liquid Ratio for Titanic Ltd. for the year ended 31st March 2022 will be:

0.4:1

The correct answer is option 3- 0.4:1.

Current Assets = Inventories + Trade Receivables + Cash and Cash equivalent + Short-term loans & advances
                         = 12,00,000 + 9,00,000 + 2,28,000 + 72,000
                         = 24,00,000

Current liabilities = Short term borrowings + Trade Payables + Short-term Provisions
                            = 6,00,000 + 23,40,000 + 60,000
                             = 30,00,000

Liquid assets = Current assets - Stock
                      = 24,00,000 - 12,00,000
                      = 12,00,000

Quick ratio = LA/CL
                  = 12,00,000/30,00,000
                  = 0.4:1