Saved Bookmarks
| 1. |
Calculate Current Ratio of a company from the following information: Inventory (Stock) Turnover Ratio: 4 Times Inventory (Stock) in the beginning was Rs. 20,000 less than Inventory, at the end. Revenue from Operations (Net Sales) Rs. 6,00,000 Gross Profit Ratio 25% Current Liabilities Rs. 60,000 Quick Ratio 0.75 : 1 |
| Answer» Current Ratio = 2.79 : 1. Closing Inventory (Stock) = Rs. 1,22,500, Quick Assets = Rs. 45,000. Current Assets = Closing Inventory (Stock) + Quick Assets = Rs. 1,22,500 + Rs.45,000 = Rs. 1,67,500. | |