Question

    The following data is provided for XYZ Ltd: •

    Current Assets: ₹15,00,000 • Inventory: ₹5,00,000 • Current Liabilities: ₹7,50,000 • Net Sales: ₹45,00,000 • Cost of Goods Sold: ₹30,00,000 Calculate the Quick Ratio and Inventory Turnover Ratio.
    A 1.33 and 6 times Correct Answer Incorrect Answer
    B 1.50 and 6 times Correct Answer Incorrect Answer
    C 1.20 and 4.5 times Correct Answer Incorrect Answer
    D 1.75 and 7 times Correct Answer Incorrect Answer

    Solution

    Quick Assets = ₹15L – ₹5L = ₹10L Quick Ratio = 10L / 7.5L = 1.33 Inventory Turnover = COGS / Inventory = 30L / 5L = 6 times

    Practice Next