Question

    A firm’s balance sheet shows: • Current

    assets: ₹400 lakh • Current liabilities: ₹250 lakh • Inventory: ₹100 lakh • Total debt: ₹500 lakh • Net worth: ₹300 lakh • EBIT: ₹90 lakh • Interest: ₹30 lakh Calculate: (a) Quick Ratio (b) Debt-Equity Ratio (c) Interest Coverage Ratio
    A 1.2; 1.67; 3 Correct Answer Incorrect Answer
    B 1.5; 1.5; 2 Correct Answer Incorrect Answer
    C 1.0; 2.0; 2.5 Correct Answer Incorrect Answer
    D 1.8; 1.0; 3.5 Correct Answer Incorrect Answer
    E 1.5; 1.25; 3 Correct Answer Incorrect Answer

    Solution

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