Question

a company had current assets of 3 lack and current liabilities of 140000 afterward it purchase a good worth 20000 on credit .calculate the current ratio after the purchase of good

Answer 1

current asset = 300000

current liability= 140000

purchased goods on cr......20000

find..current ratio

current ratio = current asset/ current liability

3,00,000/1,40,000

purchase will increase. inventories and as it is on credit it will also increase liabilities

therefore

....3,00,000 + 20,000/1,40,000 + 20,000

.....=3,20,000/1,60,000

=. 2:1

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