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Calculate Current Ratio if: Inventory is Rs. 6,00,000; Liquid Assets Rs. 24,00,000; Quick Ratio 2 : 1.

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Quick ratio = \(\frac {\textit{Liquid assets}}{\textit{Current Liabilities}} \)

or,2 = \(\frac {\textit{24,00,000}}{\textit{Current Liabilities}} \)

Current liabilities =\(\frac {\textit{24,00,000}}{\textit{2}} \)

= 12,00,000

Current Assets = Liquid Asset + Inventory 

= 24,00,000 + 6,00,000 = 30,00,000

Current Ratio = \(\frac {\textit{Current assets}}{\textit{Current Liabilities}} \)

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