Question : A Company’s Quick Ratio is 1.5 : 1; Current Liabilities are 3,00,000 and Inventory is 2,80,000. What will be the Current Asset?
Option 1: 4,50,000
Option 2: 5,20,000
Option 3: 7,30,000
Option 4: None of the above
Correct Answer: 7,30,000
Solution :
Quick Ratio = Quick Asset / Current Liabilities
1.5:1=Quick Asset/3,00,000
Quick Asset = 4,50,000
Current Asset =Quick Asset + Inventory = 4,50,000+2,80,000=7,30,000
Hence option c is the correct answer.