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Haleem trading company is a popular distributor in Salala, having operations in the entire Oman. Over these years, the company has gained a very good public opinion and quiet a big number of loyal customers. During the last year, the company has faced a serious liquidity crisis in the last year. The management of the company wants to check the liquidity ratios of the last year in order to plan for the current year. You are asked to help the management in computing the liquidity ratios. The Balance Sheet of Haleem trading company for the year ending 31-12-2020 Equity and Liabilities Equity Share Capital Capital Reserve 8% Loan on Mortgage |Creditors Bank overdraft OMR 40,000 Plant and Machinery 8,000 Land and Buildings 32,000 Fumiture & Fixtures 16,000 Stock 18,000 Debtors Investments (Short-term) |Cash in hand OMR 24,000 40,000| 16,000 14,000 14,000 4,000 14,000 Assets Profit and Loss A/c 12,000 1,26,000 |1,26,000 Choose the Current ratio and Quick ratio from the following? a. Current ratio is 1.35 and Quick ratio is 2.40 O b. Current ratio is 2 and Quick ratio is 1.35 c. Current ratio is 1.35 and Quick ratio is 2 d. Current ratio is 2.43 and Quick ratio is 1.35

Haleem trading company is a popular distributor in Salala, having operations in the entire Oman. Over these years, the company has gained a very good public opinion and quiet a big number of loyal customers. During the last year, the company has faced a serious liquidity crisis in the last year. The management of the company wants to check the liquidity ratios of the last year in order to plan for the current year. You are asked to help the management in computing the liquidity ratios. The Balance Sheet of Haleem trading company for the year ending 31-12-2020 Equity and Liabilities Equity Share Capital Capital Reserve 8% Loan on Mortgage |Creditors Bank overdraft OMR 40,000 Plant and Machinery 8,000 Land and Buildings 32,000 Fumiture & Fixtures 16,000 Stock 18,000 Debtors Investments (Short-term) |Cash in hand OMR 24,000 40,000| 16,000 14,000 14,000 4,000 14,000 Assets Profit and Loss A/c 12,000 1,26,000 |1,26,000 Choose the Current ratio and Quick ratio from the following? a. Current ratio is 1.35 and Quick ratio is 2.40 O b. Current ratio is 2 and Quick ratio is 1.35 c. Current ratio is 1.35 and Quick ratio is 2 d. Current ratio is 2.43 and Quick ratio is 1.35

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Haleem trading company is a popular distributor in Salala, having operations in the entire Oman. Over these years, the company has gained a very good public opinion and quiet a big number of loyal customers. During the last year, the company has faced a serious liquidity crisis in the last year. The management of the company wants to check the liquidity ratios of the last year in order to plan for the current year. You are asked to help the management in computing the liquidity ratios. The Balance Sheet of Haleem trading company for the year ending 31-12-2020 Equity and Liabilities Equity Share Capital Capital Reserve 8% Loan on Mortgage Creditors Bank overdraft OMR 40,000 Plant and Machinery 8,000 Land and Buildings 32,000 Fumiture & Fixtures 16,000 Stock 18,000 Debtors Investments (Short-term) Cash in hand Assets OMR 24,000 40,000 16,000 14,000 14,000 4,000 14,000 Profit and Loss A/c 12,000 1,26,000| |1,26,000 Choose the Current ratio and Quick ratio from the following? a. Current ratio is 1.35 and Quick ratio is 2.40 b. Current ratio is 2 and Quick ratio is 1.35 c. Current ratio is 1.35 and Quick ratio is 2 d. Current ratio is 2.43 and Quick ratio is 1.35
Transcribed Image Text:Haleem trading company is a popular distributor in Salala, having operations in the entire Oman. Over these years, the company has gained a very good public opinion and quiet a big number of loyal customers. During the last year, the company has faced a serious liquidity crisis in the last year. The management of the company wants to check the liquidity ratios of the last year in order to plan for the current year. You are asked to help the management in computing the liquidity ratios. The Balance Sheet of Haleem trading company for the year ending 31-12-2020 Equity and Liabilities Equity Share Capital Capital Reserve 8% Loan on Mortgage Creditors Bank overdraft OMR 40,000 Plant and Machinery 8,000 Land and Buildings 32,000 Fumiture & Fixtures 16,000 Stock 18,000 Debtors Investments (Short-term) Cash in hand Assets OMR 24,000 40,000 16,000 14,000 14,000 4,000 14,000 Profit and Loss A/c 12,000 1,26,000| |1,26,000 Choose the Current ratio and Quick ratio from the following? a. Current ratio is 1.35 and Quick ratio is 2.40 b. Current ratio is 2 and Quick ratio is 1.35 c. Current ratio is 1.35 and Quick ratio is 2 d. Current ratio is 2.43 and Quick ratio is 1.35
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