20 :- Quick Assets Rs 3,00,000; Inventory (Stock) Rs 80,000; Prepaid Expenses Rs 20,000; Working Capital Rs 2,40,000. Calculate Current Ratio.
Solution :-
Current Assets = Quick Assets + Inventories + Prepaid Expenses
= 3,00,000 + 80,000 + 20,000
= Rs 4,00,000
Working Capital = Current Assets – Current Liabilities
2,40,000 = 4,00,000 – Current Liabilities
Current Liabilities = Rs 1,60,000
Current Ratio = Current Assets/Current Liabilities
= 4,00,000/1,60,000
= 2.5 : 1