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Sonu Ltd.has a current ratio of 3:1. If its stock is 40,000 and its total current liabilities are 75,000. Find out its quick ratio
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Sonu Ltd.has a current ratio of 3:1. If its stock is 40,000 and its to...
Current Ratio

The current ratio is a financial ratio that measures a company's ability to cover its short-term liabilities with its short-term assets. It is calculated by dividing the total current assets of a company by its total current liabilities. In this case, Sonu Ltd. has a current ratio of 3:1.

Calculating Current Assets

To find out the value of Sonu Ltd.'s current assets, we can multiply the current ratio by the total current liabilities. Given that the current ratio is 3:1 and the total current liabilities are 75,000, we can calculate the current assets as follows:

Current Assets = Current Ratio * Total Current Liabilities
Current Assets = 3 * 75,000
Current Assets = 225,000

Therefore, Sonu Ltd.'s current assets amount to 225,000.

Quick Ratio

The quick ratio, also known as the acid-test ratio, is a more stringent measure of a company's liquidity than the current ratio. It excludes inventory from the current assets calculation because inventory may not be easily converted into cash in the short term. The quick ratio is calculated by dividing the sum of cash, marketable securities, and accounts receivable by the total current liabilities.

Calculating Quick Assets

To calculate the quick assets of Sonu Ltd., we need to identify the components that make up the quick ratio. The components typically include cash, marketable securities, and accounts receivable.

Unfortunately, the given information does not provide the specific values of these components. Therefore, we cannot calculate the quick ratio accurately.
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Sonu Ltd.has a current ratio of 3:1. If its stock is 40,000 and its to...
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Sonu Ltd.has a current ratio of 3:1. If its stock is 40,000 and its total current liabilities are 75,000. Find out its quick ratio
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