plz check Q.5 Determine the coste of sale from the following data.(5) Current ratio 2.5 Quick ratio 2.0 Current liabilties 400,0000 Inventory turnover 3 times May be 400,000 not cnfm Current ratio = current Assets / current liabilities 2.5 = Current assets / 4,000,000 2.5 * 4,000,000 = Current Assets Current Assets = 10,000,000 Quick ratio = current Assets – inventory / current liabilities Quick ratio = (current Assets – inventory) / 4,000,000 2 * 4,000,000 = (current Assets – inventory) 8,000,000 inventory = 10,000,000 – 8,000,000 inventory = 2,000,000 Inventory turnover = cost of sale / avg. inventory 3 = cost of sale / 2,000,000 3 * 2,000,000 cost of sale = 6,000,000 On Sun, Feb 20, 2011 at 9:51 PM, MUHAMMAD SARIM < sarim.sarwar@gmail.com > wrote: On Sun, Feb 20...
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