ЁЯУв Too many exams? DonтАЩt know which one suits you best? Book Your Free Expert ЁЯСЙ call Now!
  • google app store apple app store
    • тЬЦ

      Question

      Read the following information to answer the below

      questions: Net Sales = 40,00,000 (20 % GP Element) out of which 40% is on credit. Opening Inventories were 60 % of closing inventories. Opening Receivables are 120,000. Calculate Cash ratio of the company?
      A 1.40 Correct Answer Incorrect Answer
      B 0.09 Correct Answer Incorrect Answer
      C 0.07 Correct Answer Incorrect Answer
      D 1.04 Correct Answer Incorrect Answer

      Solution

      Cash Ratio = Cash & Cash Equivalents / Current Liabilities 24,000/ 3,50,000 0.07 Cash & Cash Equivalents= cash balance i.e., 24000 Current Liability = Trade Creditors + Bank Overdraft + Short term borrowings = 200,000+1,20,000+30,000 =3,50,000

      Practice Next
      More Accounts Questions

      Relevant for Exams:

      ask-question