Quick ratio of a company is 1.5:1. State giving reason whether the ratio will improve, decline or not change on payment of dividend by the company.

The debt-equity ratio of a company is 0.8:1. State whether the long-term loan obtained by the company will improve, decrease or not change the ratio.

The inventory turnover ratio of a company is 3 times. State, giving reason, whether the ratio improves, declines or does not change because of increase in the value of closing inventory by Rs.5,000.

What will be the operating profit ratio if operating ratio is 83.64%? 

The current ratio of a company is 3:1. State with reason whether the payment of Rs.20,000 to the creditors will increase, decrease or not change the ratio.

State with reason whether repayment of long-term loan will result in increase or decrease or no change of debt equity ratio.

A business has a current ratio of 3:1. Its networking capital is Rs.4,00,000 and its stocks are valued at Rs.2,50,000. Calculate the quick ratio. Is it satisfactory? Identify the value shown by the company in maintaining such a quick ratio

A business has a current ratio of 3:1 and quick ratio of 1:2:1. If the working capital is Rs.1,80,000, calculate the total current assets and value of inventory.

Calculate Current Ratio from the following information:
Inventory Turnover :4 times
Inventory in the beginning was Rs 20,000 less than Inventory at the end.
Revenue from Operation Rs.6,00,000.
Groos Profit Ratio 25%.
Current Liabilities Rs.60,000.
Quick Ratio 0.75:1.

The current ratio of X Ltd. is 2:1. State with reason which of the following transaction would (i) increase; (ii) decrease or (iii) not change the ratio:
(1) Included in the trade payables was a bills payable of Rs.9,000 which was met on maturuty.
(2) Company issued 1,00,000 equity shares of Rs.10 each to the Vendors of machinery purchased.

The Quick Ratio of Z Ltd. is 1:1. State with reason which of the following transactions would (i) increase; (ii) decrease or (iii) not change the ratio.
(1) Included in the trade payables was a Bills payable of Rs.3,000 which was met on maturity.
(2) Debentures of Rs.50,000 were converted into Equity shares.

Handa Ltd. has Inventory of Rs.20,000. Total liquid assets are Rs.1,00,000 and quick ratio is 2:1. Calculate current ratio.

From the following balance sheet of Aspect Ltd, calculate the current ratio.
                                                Balance Sheet
                                                       as at ...

Calculate the current ratio from the information given below
Trade receivables Rs.4,50,000, sundry debtors Rs. 2,50,000, inventories Rs.5,00,000, marketable securities Rs.1,50,000, cash and cash equivalents  Rs.2,00,000, prepaid expenses Rs.10,000, accrued income Rs.15,000, sundry creditors Rs.1,00,000, bills
payable Rs.1,50,000, outstanding expenses Rs.50,000, debentures Rs.5,00,000, preliminary expenses Rs.5,000, goodwill Rs.50,000.

The current assets of Maxell Ltd are Rs.10,00,000 and its current liabilities are Rs.4,00,000. Find its current ratio. Is it satisfactory? What value is exhibited by the company on maintaining such a ratio?

The credit sales of Mis Sun Farms Ltd amounted to Rs.10,50,000. Its debtors and bills receivables at the end of the accounting period amounted to Rs.1,00,000 and Rs.75,000 respectively. Calculate its debtor's turnover ratio and also collection period in terms of days, weeks and months.