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    Question

    What is the Current Ratio of JKL Ltd based on given

    information? Refer to the following Date for Q2-Q3 Balance Sheet Amount (Rs.) Fixed Assets 3,00,000 Cash 60,000 Inventory 40,000 Total Assets 4,00,000     Share Capital 2,00,000 Long term Debt 1,64,000 Trade Payables 36,000 Total Equity and Liabilities 4,00,000
    A 0.50 Correct Answer Incorrect Answer
    B 1.11 Correct Answer Incorrect Answer
    C 1.67 Correct Answer Incorrect Answer
    D 2.78 Correct Answer Incorrect Answer
    E 3.07 Correct Answer Incorrect Answer

    Solution

    Current Ratio = Current assets/current liabilities = (Cash + Inventory) /trade payables = (60,000 + 40,000) / 36,000 = 2.87

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