Question

A firm has current ratio 3:1.its net working capital is 1,50,000.you are required to determine :-.curent assets ,curent liabilities and liquid assets assuming inventory of 1,00,000.​

Answer 1

Answer:

Current Liabilities = 75,000

Current Assets = 2,25,000

Liquid Assets = 1,25,000

Explanation:

Given :

• Current Ratio = 3 : 1
• Working Capital = 1,50,000
• Inventory = 1,00,000

To find :

• Curent Assets
• Curent Liabilities
• Liquid Assets

Solution :

Current Ratio =

$\sf{\dfrac{Current \: Assets}{Current \: Liabilities} \: = \dfrac{3}{1}}$

Let,

Current Liabilities = x

Current Assets = 3x

★ According to the Question :

Working Capital = Current Assets - Current Liabilities

$\longrightarrow$ 1,50,000 = 3x - x

$\longrightarrow$ 1,50,000 = 2x

$\longrightarrow$ x = ${\sf{\dfrac{1,50,000}{2}}}$

$\longrightarrow$ x = 75,000

• Current Liabilities = 75,000

Current Assets = 3x

$\longrightarrow$ 3 (75,000 )

$\longrightarrow$ 2,25,000

• Current Assets = 2,25,000

Liquid Assets :

Liquid Assets = Current Assets - Inventory

$\longrightarrow$ 2,25,000 - 1,00,000

$\longrightarrow$ 1,25,000

• Liquid Assets = 1,25,000

Therefore,

Current Liabilities = 75,000

Current Assets = 2,25,000

Liquid Assets = 1,25,000