Calculate Liquid Assets and Quick Ratio of the Company.
Calculate Liquid Assets and Quick Ratio of the Company.
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Rs 60,000 ; 0.6 : 1
Rs 1,00,000 ; 1 : 1
Rs 1,60,000 ; 1.6 : 1
Rs 2,60,000 ; 2.6 : 1
The Correct Option is A
Solution and Explanation
Step 1: Calculate Liquid Assets
Liquid Assets = Current Assets - Inventory
= ₹1,60,000 - ₹1,00,000 = ₹60,000
Step 2: Calculate Quick Ratio
Quick Ratio = Liquid Assets / Current Liabilities = ₹60,000 / ₹1,00,000 = 0.6 : 1
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