Current ratio = Current agets Current liabilities Quick ratio =

Current assets - Stock Current liabilities For Arbus Nugent Limited for 20X8 and 20X7:

20X8 20X7 Current ratio 87 620 .1 -) 0.1 31450 ' ' = ^

74850 . -1 -) :j..|

32 970 ■ ~ ■

Quick ratio 87 620-34 300 . i _ i ^.i 74850- 31 600 . 1 i ^.i 31450 _ _ _ _ • I I • ^ • I 32 970 Both the current ratio and the quick ratio have improved.