Question

(b) Current Ratio 3 : 1, Quick Ratio 1.2: 1, if the working capital is 1,80,000, calculate
the current liabilities and stock.​

Answer 1

Answer:

current ratio = current assets/ current liablity

3/1 = C.A./C.L.

C.A. = 3 C.L.

working capital = C.A. - C.L.

180000 = 3C.L.- C.L.

180000 = 2 C.L.

C.L. = 90000

Quick ratio = liquid aadat/ current liablity

1.2/1 = L.A./90000

L.A. = 90000×1.2

=108000

C.A. = 90000×3=270000

stock = C.A.- L.A.

270000- 108000

= 162000

Answer 2

Answer:

The Current Liabilities = 90,000

Stock = 1,62,000

Explanation:

Current ratio = $\tt{\frac{Current \: Assest}{Current \: Liabilities} \: = \frac{3}{1}}$

Current liabilities = x

Current assests = 3x

• Working Capital = Current assests - Current liabilities

⇒ 1,80,000 = 3x - x

⇒ 2x = 1,80,000

⇒ x = 1,80,000 / 2

⇒ x = 90,000

Current liabilities = 90,000

• Current assests = 3x

⇒ 3 (90,000)

⇒ 2,70,000

Current assests = 2,70,000

Quick Ratio 1.2: 1

Quick Ratio = $\tt{\frac{Quick \: Assets}{Current \: Liabilities} = \frac{1.2}{1}}$

Current liabilities = 90,000

• Quick assests = 1.2 (90,000)

⇒ 1,08,000

Quick assests = 1,08,000

★ Stock :

Quick assests = Current assets - Stock

⇒ 1,08,000 = 2,70,000 - Stock

⇒ Stock = 2,70,000 - 1,08,000

Stock = 1,62,000

Therefore,

The Current Liabilities = 90,000

Stock = 1,62,000