18 :- From the following information, calculate Quick Ratio :
Solution :-
Current Liabilities = Total Debt – Long – term Borrowings – Long – term Provision
= 12,00,000 – 4,00,000 – 4,00,000
= Rs 4,00,000
Current Assets = Total Assets – Property, Plant and Equipement – Non – Current Investments
– Long – term Advances and Loans
= 16,00,000 – 6,00,000 – 1,00,000 – 1,00,000
= Rs 8,00,000
Liquid Assets/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