A Company’s Current Ratio is 2.8 : 1; Current Liabilities are Rs.2,00,000; Inventory is Rs. 1,50,000 and Prepaid Expenses are Rs. 10,000. Its Liquid Ratio will be :
A. 3.6 : 1
B. 2.1 : 1
C. 2 : 1
D. 2.05 : 1
Answer:C
A Company’s Current Ratio is 2.8 : 1; Current Liabilities are Rs.2,00,000; Inventory is Rs. 1,50,000 and Prepaid Expenses are Rs. 10,000. Its Liquid Ratio will be :
A. 3.6 : 1 B. 2.1 : 1 C. 2 : 1 D. 2.05 : 1