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how to calculate the Current Ratio, Liquid Ratio &
Operating Ratio

Answer Posted / mahendar

current ratio= current assets/current liabilities
current assets= cash in hand,cash in bank, closing
stock,sundry debtors,prepaid expenses

current liabilities= sundry creditors,outstanding
liabilities,prepaid recivable incomes

liquid ratio=current assets/quick liabilities

Operating ratio= Cost of goods sold/Net sales*100

Is This Answer Correct ?    14 Yes 8 No



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