Question
If a firm has 100 in inventories, a current ratio equal
to 1.2, and a quick ratio equal to 1.1, what is the firm's Net Working Capital?Solution
Current Ratio = CA/CL=1.2 CA= 1.2CL -------(1) Quick Ratio = (CA-100)/CL=1.1 Equating (1) in quick ratio will give: 1.2 CL-100 / CL = 1.1 CL = 1000 So, CA will be 1.2 CL i.e., 1.2 * 1000 = 1200 WC = CA-CL 1200-1000 = 200
More Accounts Questions
- Find the simplified value of following expression:
0.998 + 0.882 + 0.12 ?2 × 25 = 42 × 21 + 172Â
- What will come in the place of question mark (?) in the given expression?
389 + 641 - ? = 180 X 2 9 × 4 ? ÷ 16 = 144
(√1024 + √324)% of 780 = ?% of 260
What value should come in the place of (?) in the following questions.
336 ÷ 6 ÷ √16 * ? = 1400 ÷ 4
What will come in the place of question mark (?) in the given expression?
9 (? + 12) = 3 (14 + 17 - 11)
Evaluate: (768÷16)×(125÷25)−(81÷9)×12
81 ÷ 0.09 × 1.4 – 1223=?
32 × 3 (54 – 15) + 186 ÷ 3 ÷ 2 – (21)² = ?
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