Question
A company has current assets ₹6,00,000, inventory
₹2,50,000, prepaid expenses ₹50,000, and current liabilities ₹3,00,000. Calculate the quick ratio.Solution
Quick Ratio = (Current Assets - Inventory - Prepaid Expenses) / Current Liabilities = (₹6,00,000 - ₹2,50,000 - ₹50,000) / ₹3,00,000 = ₹3,00,000 / ₹3,00,000 = 1.0
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