Zing Limited has current assets of 4,650,000 and current liabilities of 1,850,000. The current assets

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Zing Limited has current assets of ₹ 4,650,000 and current liabilities of ₹ 1,850,000. The current assets include inventories amount to ₹ 1,100,000.

1. Calculate the current ratio and liquid ratio for the company.

2. What will be the impact of the following transactions on the current ratio:

1. Goods costing ₹ 800,000 are purchased on credit.

2. Machine purchased for ₹ 1,000,000 and is paid for in cash.

3. Cash collected from trade receivables ₹ 500,000.

4. Goods are sold for cash for ₹ 750,000.

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Financial Accounting For Managers

ISBN: 9789352868339

3rd Edition

Authors: Sanjay Dhamija

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Question Posted: Dec 08, 2023 01:13 AM

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Zing Limited has current assets of 4,650,000 and current liabilities of 1,850,000. The current assets

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1 2 1 Both current assets and current liabilities will increase by 800000 T...View the full answer

Financial Accounting For Managers

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