Calculate the Current Ratio from the following financial data:ParticularsAmount (in Rs.)Inventories 60,000 Tra

Question

Calculate the Current Ratio from the following financial data:ParticularsAmount (in Rs.)Inventories 60,000 Trade receivables 60,000 Advance tax 4,000 Cash and cash equivalents 50,000 Trade payables 1,30,000 Bank Overdraft 4,000

Accepted Answer

Let's calculate the values step-by-step:Current Assets:

Current Assets = Inventories + Trade Receivables + Advance Tax + Cash and Cash Equivalents

Current Assets = 60, 000 + 60, 000 + 4, 000 + 50, 000 = Rs. 1, 74, 000

Current Liabilities:

Current Liabilities = Trade Payables + Bank Overdraft

Current Liabilities = 1, 30, 000 + 4, 000 = Rs. 1, 34, 000

Current Ratio:

Current Ratio = \frac{Current Assets}{Current Liabilities} = \frac{1 , 74 , 000}{1 , 34 , 000} \approx 1.2985 : 1 \approx 1.30 : 1

Calculate the Current Ratio from the following financial data:ParticularsAmount (in Rs.)Inventories $60, 000$ Trade receivables $60, 000$ Advance tax $4, 000$ Cash and cash equivalents $50, 000$ Trade payables $1, 30, 000$ Bank Overdraft $4, 000$

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Calculate the Current Ratio from the following financial data:ParticularsAmount (in Rs.)Inventories60,000 Trade receivables60,000 Advance tax4,000 Cash and cash equivalents50,000 Trade payables1,30,000 Bank Overdraft4,000