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in Ratio Analysis by (48.4k points)
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Calculate quick ratio: Total current liabilities Rs. 2,40,000; Total current assets Rs. 4,50,000; Inventories Rs. 70,000; Prepaid expenses Rs. 20,000 

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Best answer

Quick ratio = (Current assets)/(Current liabilities)

Quick ratio = Current assets - Inventory - Prepaid expenses 

= 4,50,000 - 70,000 - 20,000

= 3,60,000

Quick ratio = 3,60,000/2,40,000

= 1.5 : 1

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