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Xolo Ltd.'s Liquidity Ratio is 2.5 : 1. Inventory is 6,00,000. Current Ratio is 4: 1. Find out the Current Liabilities. |
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Answer» current RATIO =current ASSETS \current liability=4/1 QUICK ratio=quick assets /current liability=2.5/1 let the current liability be=x current assets =4x quick assets=2.5x stock=current assets - quick assets 6,00,000=4x -2.5x or, x=4,00,000 current liability = 4,00,000 |
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