Question

A firm's current ratio is 2:1 . networking capital is Rs 90000/- . what will be the amount of current liabilities ​

Answer 1

Answer:

current ratio = 2:1 = CA:CL

current assets (CA) = 180000

current liabilities (CL) = 90000

Explanation:

CA/CL =2/1

CA = 2CL

working capital = CA-CL

Rs. 90000 /- = CA-CL

90000 = 2 CL -CL

90000 = CL

current assets = 2*90000 = 180000

current liabilities = 90000

working capital = 180000 - 90000

= 90000