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Read the following hypothetical extract of Rehan Limited and answer the given questions on the basis of the same:

YEAR 2020 2019 2018
AMOUNT (IN ₹) (IN ₹) (IN ₹)
Outstanding Expenses 50,000 40,000 25,000
Prepaid Expenses 3,00,000 2,50,000 3,50,000
Trade Payables 18,00,000 16,00,000 14,00,000
Inventory 12,00,000 10,00,000 11,00,000
Trade Receivables 11,00,000 8,00,000 10,00,000
Cash in hand 17,00,000 12,00,000 15,00,000
Revenue from operations 24,00,000 18,00,000 20,00,000
Gross Profit Ratio 12% 15% 18%

1 Current Ratio for the year 2020 will be_____________ (Choose the correct alternative) 

(a) 2:1 

(b) 1.8:1 

(c) 2.32:1 

(d) 2.4:1 

2 Quick Ratio for the year 2018 will be_________(Choose the correct alternative) 

(a) 1.75:1 

(b) 1.8:1 

(c) 0.94:1 

(d) 1.25:1

3 Inventory turnover ratio for the year 2020 will be______(Choose the correct alternative) 

(a) 1.62times 

(b) 1.82 times 

(c) 1.55times 

(d) 1.92 times 

4. Cost of Revenue from Operations for the year 2020 would be _________ (Choose the correct alternative) 

(a) ₹21,12,000 

(b) ₹21,13,000 

(c) ₹21,15,000 

(d) ₹21,17,000

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1 Answer

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by (15.2k points)

1. (c) 2.32:1 

2. (b) 1.75:1 

3. (d) 1.92 times 

4. (a) ₹21,12,000

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