19 :- Current Assets Rs 6,00,000; Inventories Rs 1,20,000; Working Capital Rs 5,04,000. Calculate Quick Ratio.
Solution :-
Quick Assets = Current Assets – Inventories
= 6,00,000 – 1,20,000
= Rs 4,80,000
Working Capital = Current Assets – Current Liabilities
5,04,000 = 6,00,000 – Current Liabilities
Current Liabilities = Rs 96,000
Quick Ratio = Quick Assets/Current Liabilities
= 4,80,000/96,000
= 5 : 1