The quick ratio is 1.8:1, the current ratio is 2.7:1 and current liabilities are Rs 60,000. Determine value of stock.
Quick assets = 1.8 × Current liabilities
Quick assets = 1.8 × Rs. 60,000
Quick assets = Rs. 1,08,000
Current assets = 2.7 × Current assets
Current assets = 2.7 × Rs. 60,000
Current assets = Rs. 1,62,000
Stock = Current assets - Quick assets
Stock = Rs. 1,62,000 - Rs. 1,08,000
Value of a stock = Rs. 54,000