33 :- Venus Ltd.’s inventory is Rs 3,00,000. Total Liquid Assets are Rs 12,00,000 and Quick Ratio is 2:1. Work out Current Ratio.
Solution :-
Quick Ratio = Liquid Assets/Current Liabilities
2 = 12,00,000/Current Liabilities
Current Liabilities = Rs 6,00,000
Current Assets = Liquid Assets + Inventory
= 12,00,000 + 3,00,000
= Rs 15,00,000
Current Ratio = Current Assets/Current Liabilities
= 15,00,000/6,00,000
= 2.5 : 1