Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed

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 80,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost management a strategic approach

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

5th edition

73526940, 978-0073526942

More Books

Students also viewed these Accounting questions