Handa Ltd.has inventory of Rs 20,000. Total liquid assets are Rs 1,00,000 and quick ratio is 2:1. Calculate current ratio.

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Solution

or,

Current Assets = Liquid Assets + Inventory
= 1,00,000 + 20,000
= 1,20,000

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Handa Ltd.has inventory of Rs 20,000. Total liquid assets are Rs 1,00,000 and quick ratio is 2:1. Calculate current ratio.

or, Current Assets = Liquid Assets + Inventory = 1,00,000 + 20,000 = 1,20,000

or,

Current Assets = Liquid Assets + Inventory
= 1,00,000 + 20,000
= 1,20,000