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