Assets Net Fixed Assets - 400 Inventories - 150 Cash - 50 Receivables - 150 Goodwill - 50 Total Asse

Assets Net Fixed Assets - 400 Inventories - 150 Cash - 50 Receivables - 150 Goodwill - 50 Total Assets - 800 Liabilities Capital - 180 Reserves - 20 Term Loan - 300 Bank C/C - 200 Trade Creditors - 50 Provisions - 50 Total Liabilities - 800 . 5. Current Ratio = ? a. 1:1.33 b. 1:1.17 c. 1.33:1 d. 1.17:1 Ans - d Explanation : CA / CL = 350 / 300 = 1.17 : 1 ............................................. 6. Quick Ratio = ? a. 0.33:1 b. 0.66:1 c. 1:0.33 d. 1:0.66 Ans - b Explain pls

 

Current Assets = Inventories(stock) + Receivables(debtors)+ Cash ; bank bal and Quick Assets = Current assets - Inventories- Prepaid Expenses if any

 

Current Liabilities = Creditors + Provisions + Bank overdraft or CC balance and any short term liabilities. Quick Ratio = (350-150)/300 = 0.66:1

 

Current Ratio :Current assets/ current liabilities....See more