Current Ratio of a Company is 2.4: 1 and its Current Liabilities are 2,00,000. Subsequently, it sold goods costing 1,00,000 at a profit of 40%, half of which was on Credit. Current ratio will be: a) 3.1:1 b) 2.6:1 c) 2.4:1 d) 2.5:1

Current Ratio of a Company is 2.4: 1 and its Current Liabilities are 2,00,000. Subsequently, it sold goods costing 1,00,000 at a profit of 40%, half of which was on Credit. Current ratio will be: a) 3.1:1 b) 2.6:1 c) 2.4:1 d) 2.5:1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Current Ratio of a Company is 2.4: 1 and its Current Liabilities are 2,00,000. Subsequently, it sold goods
costing 1,00,000 at a profit of 40%, half of which was on Credit. Current ratio will be:
a) 3.1:1
b) 2.6: 1
c) 2.4:1
d) 2.5:1

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