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Current assets 85000 ,inventory 22000,prepaid expenses 3000.then liquid assets will be?
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Current assets 85000 ,inventory 22000,prepaid expenses 3000.then liqui...
Calculation of Liquid Assets


Current assets: 85000

Inventory: 22000

Prepaid expenses: 3000


Explanation


Liquid assets are the assets that can be easily converted into cash without losing their value. These assets are essential for a company to meet its short-term obligations. The calculation of liquid assets involves subtracting the non-liquid assets from the current assets of a company. Here, we have:



  • Current assets = 85000

  • Non-liquid asset (Inventory) = 22000

  • Non-liquid asset (Prepaid expenses) = 3000



Therefore, liquid assets can be calculated as:


Liquid assets = Current assets - Non-liquid assets


Liquid assets = 85000 - (22000 + 3000)


Liquid assets = 60000


Therefore, the liquid assets of the company are 60000.
Community Answer
Current assets 85000 ,inventory 22000,prepaid expenses 3000.then liqui...
Liquid assets = current assets - inventory - prepaid expenses
=85000 - 22000- 3000
= 60000
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Current assets 85000 ,inventory 22000,prepaid expenses 3000.then liquid assets will be?
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