Quick ratio is 1.8:1, current ratio is 2.7:1 and current liabilities are Rs 60,000. Determine value of stock.

Question

Quizplus · Accepted Answer

The quick ratio is calculated as (Current Assets - Inventory) / Current Liabilities = 1.8. Given the current liabilities of Rs 60,000, we can calculate the quick assets as 1.8 * 60,000 = Rs 108,000. The current ratio is calculated as Current Assets / Current Liabilities = 2.7. Given the current liabilities of Rs 60,000, we can calculate the current assets as 2.7 * 60,000 = Rs 162,000. The difference between current assets and quick assets gives us the value of stock, which is Rs 162,000 - Rs 108,000 = Rs 54,000.

Quick Ratio Is 1