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Trade Receivables Rs. 40,000, Trade Paya...

Trade Receivables Rs. 40,000, Trade Payables Rs. 60,000, Prepaid Expenses Rs. 10,000, Inventory Rs. 1,00,000 and Goodwill is Rs. 15,000. Current Ratio will be:

A

`1:2`

B

`2:1`

C

`2.33:1`

D

`2.5:1`

Text Solution

Verified by Experts

The correct Answer is:
D
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Knowledge Check

  • Cash Balance Rs. 15,000, Trade Receivables Rs. 35,000, Inventory Rs. 40,000, Trade Payables Rs. 24,000 and Bank Overdraft is Rs. 6,000. Current Ratio will be:

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