Calculate 'Quick Ratio' and 'Debt - Equity Ratio' from the following information : < Total Debt $\displaystyle 8,00,000$ Inventory $\displaystyle 2,20,000$ Long Term Debts $\displaystyle 6,00,000$ Working Capital $\displaystyle 2,40,000$ Shareholders' Funds $\displaystyle 12,00,000$

Quick Ratio= Quick Assets / Current Liabilities ……………. (½) Current Liabilities = Total Debt - Long term debt = ₹$\displaystyle 8,00,000$- ₹$\displaystyle 6,00,000$ = ₹$\displaystyle 2,00,000$ ………………………..……….(½) Quick Assets = Current Assets- Inventory $\displaystyle 2$ Current Assets = Working Capital + Current Liabilities = ₹$\displaystyle 2,40,000$ + ₹$\displaystyle 2,00,000$ = ₹$\displaystyle 4,40,000$ Quick Assets = ₹$\displaystyle 4,40,000$ - ₹$\displaystyle 2,20,000$ = ₹$\displaystyle 2,20,000$ ………………………..……………(½) Quick Ratio= $\displaystyle 2,20,000$/ $\displaystyle 2,00,000$ = $\displaystyle 1.1$ : $\displaystyle 1$……………………..(½) Debt-Equity Ratio= Debt / Equity……………………………...(½) Debt= Long term Debt = ₹$\displaystyle 6,00,000$ $\displaystyle 1$ Equity= Shareholder’s Funds = ₹$\displaystyle 12,00,000$ Debt-Equity Ratio = $\displaystyle 6,00,000$ / $\displaystyle 12,00,000$ = $\displaystyle 1$: $\displaystyle 2$ or $\displaystyle 0.5$:$\displaystyle 1$…………………………….…(½)