1.

Xolo Ltd.'s Liquidity Ratio is 2.5 : 1. Inventory is 6,00,000. Current Ratio is 4: 1. Find out the Current Liabilities.​

Answer»

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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