Question
Calculate the current Ratio from the above data:
Direction (14 -17):- Study the Balance Sheet below to answer the questions below:Solution
Current ratio = current assets/current liabilities                        = (inventories + trade receivables + cash) /trade payables                        = (4,00,000 + 9,00,000 + 5,00,000) /5,00,000                        = 3.6 times
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