24 :- Current Liabilities of a company are Rs 1,50,000. Its Current Ratio is 3:1 and Acid Test Ratio (Liquid Ratio) is 1:1. Calculate values of Current Assets, Liquid Assets and Inventory.
Solution :-
Current Ratio = Current Assets/Current Liabilities
3 = Current Assets/1,50,000
Current Assets = 1,50,000 x 3
= Rs 4,50,000
Quick Ratio = Liquid Assets/Current Liabilities
1 = Current Assets – Inventories/Current Liabilities
1 = 4,50,000 – Inventories/1,50,000
1,50,000 = 4,50,000 – Inventories
Inventories = 4,50,000 – 1,50,000
= Rs 3,00,000
Liquid Assets = Current Assets – Inventories
= 4,50,000 – 3,00,000
= Rs 1,50,000