Question: Answer please In the year 2013-14, Current Ratio and Acid Test Ratio of Aren Ltd. were 3 : 1 ano 2:1 respectively. Calculate the Current

Answer please
In the year 2013-14, Current Ratio and Acid Test Ratio of Aren Ltd. were 3 : 1 ano 2:1 respectively. Calculate the Current Ratio and Acid Test Ratio for the year 2014-15 from the given particulars and give your comments about the same, when current ratio 2:1 and liquid ratio of 1:1 are said to be satisfactory. Particulars $ Cash 10,000 Debtors 71,000 Short term Investments 20,000 Long term Investments 40,000 Closing Stock: Raw Material 1,00,000 Finished Products _40,000 1,40,000 Prepaid Expenses 9,000 Plant and Machinery 2,00,000 Loose Tools 50,000 Creditors 1,00,000 Provision for Taxation 25,000 Outstanding Expenses 5,000 Profit and Loss Balance 80,000
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