Question: Fruity Ltd had the following comparative current assets and current liabilities: 30 June 2020 30 June 2019 Current assets Cash $ 50,000 $ 60,000 Marketable

Fruity Ltd had the following comparative current assets and current liabilities:

                                                                                30 June 2020              30 June 2019

Current assets

Cash                                                                            $ 50,000                       $ 60,000

Marketable securities                                                     70,000                          70,000

Accounts receivable                                                      65,000                          55,000

Inventory                                                                     120,000                          20,000

Prepaid expenses                                                         55,000                          30,000

Total current assets                                                  $360,000                      $235,000


Current liabilities

Accounts payable                                                     $50,000                       $140,000

Salaries payable                                                         70,000                          20,000

Bank loan payable                                                    150,000                          85,000

Total current liabilities                                             $270,000                      $245,000


Required: 

a) Calculate the following financial ratios for Fruity Ltd for the years 30th June 2020 and 30th June 2019

• Current ratio 

• Quick ratio

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