Question

1. If the current ratio is 2.5 and 4 and the working capital is 3 600,000. Then the current
property will be
(A) 3,00,000
(B) 5,00,000
(C) 4,00,000
(D) 1,00,000
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Answer 1

Answer:

Current Ratio = Current Assets (C.A)/ Current Liabilities (C.L) = 2.5

So, CA= 2.5 CL

Now, Working Capital = Current Assets(C.A) minus Current Liabilities (C.L) = Rs.60000

So, C.A - C.L = 60000

2.5 C.L-CL = 60000

C.L = Rs.40000

Now, C.A = 2.5 x 40000 = Rs.100000

That is OPTION D