Question
A company reports Current Assets ₹6,00,000, Current
Liabilities ₹3,00,000, Inventory ₹1,20,000, Cash ₹60,000. What is the company’s Quick Ratio?Solution
Quick Assets = CA – Inventory = 6,00,000 – 1,20,000 = 4,80,000. Quick Ratio = 4,80,000 / 3,00,000 = 1.6.
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