Current assets= Rs10000. Stock =Rs 2000
Current liabilities =Rs8000. Bank overdraft =Rs1000
Calculate current ratio and quick ratio

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Solution

Dear Student
Current Ratio = Current Assets / Current Liabilities
Current Ratio = 10000/8000
Current Ratio = 1.25

Quick Ratio = Quick Assets / Current Liabilities (excluding bank overdraft and cash credit )
Quick Ratio = (10000-2000) / (8000-1000)
Quick Ratio = 8000 / 7000
Quick Ratio = 1.14

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Current assets= Rs10000. Stock =Rs 2000 Current liabilities =Rs8000. Bank overdraft =Rs1000 Calculate current ratio and quick ratio

Current assets= Rs10000. Stock =Rs 2000
Current liabilities =Rs8000. Bank overdraft =Rs1000
Calculate current ratio and quick ratio