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Quick Ratio = Quick Assets / Current Liabilities 7,80,000 / 4,00,000 =1.95 Quick Assets = Current assets – Stock – Prepaid expenses 10,50,000 (Current Assets) - 2,50,000 - 20,000 = 7,80,000 Current Liabilities = Trade Payables + Bank Overdraft =1,60,000 + 2,40,000 =4,00,000