a ltd. gas a current ratio of 3.5 :1 and acid -test ratio of 2:1. if the inventory is ₹ 30,000,find out its current assets and total current liabilities.
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Answer:
Current liabilities = 20,000
Current assets = 70,000
Explanation:
Let current liabilities = X
Current ratio =
Currentliaabilities
Currentassets
= 3.5
⇒ Current assets = 3.5X
Acid test ratio =Currentliabilities
Liquidassets
= 2
⇒ Liquid assets = 2X
Liquid assets = Current assets - Inventory
⇒ 2X = 3.5X - 30,000
⇒ 1.5X = 30,000
⇒ X = 20,000
Current liabilities = X = 20,000
Current assets = 3.5X = 70,000
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