Problem No. 1 Current Assets AED Current Liabilities AED Cash Account receivable Inventory Stock Plant and Machinery Land and Building 40,000 10,000 1,00,000 2,00,000 3,50,000 1,40,000 Account Payable Creditors Bank Loan General Reserve Profit and Loss Account Share Capital 50,000 1,00,000 4,20,000 40,000 30,000 2,00,000 8,40,000 8,40,000 1. Compute the current and quick ratios. 2. If you an owner of the business, how would you evaluate the liquidity position of the company?

Problem No. 1 1. Compute the current and quick ratios. 2. If you an owner of the business, how would you evaluate the liquidity position of the company