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      Question

      Refer to the following Data. 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' 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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