Haleem trading company is a popular distributor in Salala, having operations in the entire Oman. Over these years, the company has gained a very good public opinion and quiet a big number of loyal...


 Haleem trading company is a popular distributor in Salala, having operations in the entire Oman. Over these years, the company has gained a very good public opinion and quiet a big number of loyal customers. During the last year, the company has faced a serious liquidity crisis in the last year. The management of the company wants to check the liquidity ratios of the last year in order to plan for the current year. You are asked to help the management in computing the liquidity ratios.



The Balance Sheet of Haleem trading company for the year ending 31-12-2020



Choose the Current ratio and Quick ratio from the following?









a.

Current ratio is 2.43 and Quick ratio is 1.35






b.

Current ratio is 1.35 and Quick ratio is 2.40






c.

Current ratio is 1.35 and Quick ratio is 2






d.

Current ratio is 2 and Quick ratio is 1.35








Equity and Liabilities<br>Equity Share Capital<br>Capital Reserve<br>8% Loan on Mortgage<br>OMR<br>Assets<br>OMR<br>40,000 Plant and Machinery<br>8,000 Land and Buildings<br>32,000 Fumiture & Fixtures<br>16,000 Stock<br>18,000 Debtors<br>Investments (Short-term)<br>Cash in hand<br>24,000<br>40,000<br>16,000<br>14,000<br>14,000<br>4,000<br>Creditors<br>Bank overdraft<br>14,000<br>Profit and Loss A/c<br>12,000<br>1,26,000|<br>|1,26,000<br>

Extracted text: Equity and Liabilities Equity Share Capital Capital Reserve 8% Loan on Mortgage OMR Assets OMR 40,000 Plant and Machinery 8,000 Land and Buildings 32,000 Fumiture & Fixtures 16,000 Stock 18,000 Debtors Investments (Short-term) Cash in hand 24,000 40,000 16,000 14,000 14,000 4,000 Creditors Bank overdraft 14,000 Profit and Loss A/c 12,000 1,26,000| |1,26,000

Jun 10, 2022
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