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    Question

    Refer the following summarized Balance Sheet of Roy Ltd.

    as on 31‐3‐2023: Additional Information: Operating expenses for the year 2023 amounted to Rs. 15,50,000. Consider 365 days in a year. Calculate Cash ratio from the above information:
    A 0.23 Correct Answer Incorrect Answer
    B 1.95 Correct Answer Incorrect Answer
    C 0.50 Correct Answer Incorrect Answer
    D 0.60 Correct Answer Incorrect Answer

    Solution

    Cash & Bank Balance + Marketable Securities / Current Liabilities = 2,40,000 / 4,00,000 = 0.60 Cash & Bank Balance + Marketable Securities: = 40,000 (Cash at Bank) + 50,000 (Cash in Hand) + 1,50,000 (Marketable securities) = 2,40,000 Current Liabilities  = Trade Payables + Bank Overdraft = 1,60,000 + 2,40,000 = 4,00,000

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