Question
A firm has a current ratio of 2.5 and quick ratio of
1.2. Its current liabilities are ₹4 lakh. What is the value of inventory?Solution
Current Assets = 2.5 × 4 = ₹10 lakh Quick Assets = 1.2 × 4 = ₹4.8 lakh Inventory = Current Assets – Quick Assets = ₹10 – ₹4.8 = ₹5.2 lakh
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