27 :- Working Capital of a company is Rs 3,60,000; Total Debts Rs 7,80,000; Long – term Debts Rs 6,00,000; Inventories Rs 1,80,000. Calculate Liquid Ratio.
Solution :-
Working Capital = Current Assets – Current Liabilities
3,60,000 = C.A – C.L — Eq 1
Total Debts = Non – Current Liabilities – Current Liabilities
7,80,000 = 6,00,000 – Current Liabilities
Current Liabilities = Rs 1,80,000
Putting Current Liabilities value in eq 1
3,60,000 = C.A – 1,80,000
Current Assets = 5,40,000
Quick Assets = Current Assets – Inventories
= 5,40,000 – 1,80,000
= Rs 3,60,000
Liquid Ratio = Quick Assets/Current Liabilities
= 3,60,000/1,80,000
= 2 : 1