Question

calculate amount of fixed asset and proprietors fund where ratio of FA to PF is 0.75 and net working capital is 600000.​

Answer 1

Current Ratio = Current Assets (C.A)/ Current Liabilities (C.L) = 2.5

So, CA= 2.5 CL

Working Capital = Current Assets(C.A) minus Current Liabilities (C.L) = Rs.60000

C.A - C.L = 60000

2.5 C.L-CL = 60000

C.L = Rs.40000

=> C.A = 2.5 x 40000 = Rs.100000