Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Answer please In the year 2013-14, Current Ratio and Acid Test Ratio of Aren Ltd. were 3 : 1 ano 2:1 respectively. Calculate the Current
Answer please
In the year 2013-14, Current Ratio and Acid Test Ratio of Aren Ltd. were 3 : 1 ano 2:1 respectively. Calculate the Current Ratio and Acid Test Ratio for the year 2014-15 from the given particulars and give your comments about the same, when current ratio 2:1 and liquid ratio of 1:1 are said to be satisfactory. Particulars $ Cash 10,000 Debtors 71,000 Short term Investments 20,000 Long term Investments 40,000 Closing Stock: Raw Material 1,00,000 Finished Products _40,000 1,40,000 Prepaid Expenses 9,000 Plant and Machinery 2,00,000 Loose Tools 50,000 Creditors 1,00,000 Provision for Taxation 25,000 Outstanding Expenses 5,000 Profit and Loss Balance 80,000Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started