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No. 1 Current Assets AED Current Liabilities AED Cash 40,000 Account Payable 50,000 Account receivable 10,000 Creditors 1,00,000 Inventory 1,00,000 Bank Loan 4,20,000 Stock 2,00,000

No. 1 Current Assets AED Current Liabilities AED Cash 40,000 Account Payable 50,000 Account receivable 10,000 Creditors 1,00,000 Inventory 1,00,000 Bank Loan 4,20,000 Stock 2,00,000 General Reserve 40,000 Plant and Machinery 3,50,000 Profit and Loss Account 30,000 Land and Building 1,40,000 Share Capital 8,40,000 1. Compute the current and quick ratios. 2,00,000 8,40,000 2. If you an owner of the business, how would you evaluate the liquidity position of the company? 2

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