An electronics retailer, ElectroMart, has the following current assets: Cash Rs.20,000, Marketable Securities Rs.15,000, Accounts Receivable Rs.55,000, and Inventory Rs.35,000. Its current liabilities are Rs.90,000. Calculate ElectroMart's Quick Ratio. Show the calculation step by step.

Step-by-step solution

1. Identify the liquid assets that qualify for the quick ratio: cash, marketable securities, and accounts receivable.
2. Add the liquid assets: 20,000 + 15,000 + 55,000 = 90,000.
3. Divide the sum of liquid assets by current liabilities: 90,000 ÷ 90,000 = 1.0.
4. Thus, the quick ratio of ElectroMart is 1.0.

Concept tested: Quick Ratio

Published 1 October 2026 · How this solution was prepared and checked