35 :- From the following information, calculate (i) Current Ratio; and (ii) Quick Ratio :
Solution :-
Total Debt = Long – term Borrowings + Long – term Provisions + Current Liabilities
12,00,000 = 4,00,000 + 4,00,000 + Current Liabilities
Current Liabilities = Rs 4,00,000
Total Assets = Fixed Assets + Non – current Investments + Long – term Loans and Advances + Current Assets
16,00,000 = 6,00,000 + 1,00,000 + 1,00,000 + Current Assets
Current Assets = Rs 8,00,000
Current Ratio = Current Assets/Current Liabilities
= 8,00,000/4,00,000
= 2 : 1
Quick Assets = Current Assets – Inventories – Prepaid Expenses
= 8,00,000 – 1,90,000 – 10,000
= Rs 6,00,000
Quick Ratio = Quick Assets/Current Liabilities
= 6,00,000/4,00,000
= 1.5 : 1