Numerical - Calculate value of stock for given current liabilities, quick & current ratio

Q.  Quick ratio is 1.8:1, current ratio is 2.7:1 and current liabilities are Rs 60,000. Determine value of stock.
- Published on 19 Oct 15

a. Rs 54,000
b. Rs 60,000
c. Rs 1,62,000
d. None of the above

ANSWER: Rs 54,000

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    Discussion

  • zeba khan   -Posted on 01 Feb 17
    good for interviews and minor knwledge of finacial terms which js benificial for tips and gulidllines of students
  • Dilip Kumar Jha   -Posted on 29 Aug 16
    Quick Ratio : 1.8:1 it means if current Liabilities are Rs. 60000 then liquid assets will be Rs. 60000x1.8 = Rs. 108000
    Further Current ratio is 2.7:1 & Current Liabilites are Rs. 60000 then current assets will be Rs. 60000x2.7 = Rs. 162000
    So Stock = Current Assets - Liquid Assets
    = Rs.162000 - Rs.108000 = Rs.54000

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