Question 21:

Current Liabilities of a company are ₹15,00,000. Its Current Ratio is 3 : 1 and Liquid Ratio is 1 : 1. Calculate value of Inventory

Answer:

Current ratio= Quick assets/Current liabilities=3/1

Acid test ratio= Liquied assets/Current liabilities=1/1

Current Liabilities = 15,00,000

Current Assets = 3 × Current Liabilities

= 3 × 15,00,000 = 45,00,000

Liquid Assets = 1 × 15,00,000 = 15,00,000

Inventory = Current Assets − Liquid Assets

= 45,00,000 − 15,00,000 = 30,00,000

Question 22:

Xolo Ltd.'s Liquidity Ratio is 2.5 : 1. Inventory is ₹6,00,000. Current Ratio is 4 : 1. Find out the Current Liabilities.

Answer:

Current ratio= Current assets/Current liabilities=4/1

 

Quick ratio= Quick assets/Current liabilities=2.5/1

Let the Current Liabilities be = x

Current Assets = 4x

Quick Assets = 2.5x

Stock = Current Assets − Quick Assets

6,00,000 = 4x − 2.5x

or, x = 4,00,000

Current Liabilities = x = ₹4,00,000

 

Question 23:

Umesh Ltd. has Current Ratio of 4.5 : 1 and a Quick Ratio of 3 : 1. If its inventory is ₹36,000, find out its total Current Assets and total Current Liabilities.

Answer:

Current ratio= Current assets/Current liabilities=4.5/1

 

Quick ratio= Quick assets/Current liabilities=3/1

Inventory = 36,000

Let Current Liabilities be = x

Current Assets = 4.5x

Quick Assets = 3x

Stock = Current Assets − Quick Assets

36,000 = 4.5x − 3x

x = 24,000

Current Assets = 4.5x = 4.5 × 24,000 = 1,08,000

Liquid Assets= 3x = 3 × 24,000 = 72,000

Question 24:

Current ratio 4; Liquid ratio 2.5; Inventory ₹6,00,000. Calculate Current liabilities, Current Assets and Liquid Assets.

Answer:

Current ratio= Current assets/Current liabilities=4/1

 

Quick ratio= Quick assets/Current liabilities=2.5/1

Inventory = 6,00,000

Let Current Liabilities be = x

Current Assets = 4x

Quick Assets = 2.5x

Stock = Current Assets − Quick Assets

6,00,000 = 4x – 2.5x

x = 4,00,000

Current Assets = 4×4,00,000 = 16,00,000

Liquid Assets = 2.5×4,00,000 = 10,00,000

 

Question 25:

Current Liabilities of a company are ₹1,50,000. Its Current Ratio is 3 : 1 and Acid Test Ratio (Liquid Ratio) is 1 : 1. Calculate values of Current Assets, Liquid Assets and Inventory.

Answer:

Current ratio= Current assets/Current liabilities=3/1

 

Acid test ratio= Liquid assets/Current liabilities=1/1

Current Liabilities = 1,50,000

Current Assets = 3 × Current Liabilities

= 3 × 1,50,000 = 4,50,000

Liquid Assets = 1 × 1,50,000 = 1,50,000

Inventory = Current Assets − Liquid Assets

= 4,50,000 − 1,50,000 = 3,00,000