027. (Liquidity & Activity Ratios): Royal Ltd uses perpetual inventory system to record inventories. Its selected beginning balances are as follows: Cash Rs. 300,000, A/c Receivables Rs. 140,000, Office equipment Rs. 160,000, Inventory Rs. 140,000, A/C Payable Rs. 220,000, Ordinary Share Capital Rs. 720,000. During the period, following transactions were completed: (0) Purchased merchandise Rs. 360,000 on account. (ii) Sold merchandise costing Rs. 300,000 for Rs. 400,000 on account. (iii) Returned some defective merchandise to suppliers Rs. 10,000. (iv) Collected cash from customers Rs. 280,000. REQUIRED: Computation of the following at the end of period: (i) Quick Ratio (ii) Current Ratio (ill) Receivable turnover (iv) Inventory turnover