Question

calculate current & liquidity ratios from the following
Total current Assets rs200000
working capital rs 80000
stock rs 20000​

Answer 1

Answer:

Working notes

1)working capital= current assets-current liab

80,000=200,000- current liabilities

current liabilities=120,000

2) liquid assets= 200,000-20,000

liquid ratios= 180,000

Explanation:

Current ratios=200,000/120,000

Current ratios= 1.67:1

Liquidity ratio= liquid ratios/ current assets

liquid ratios=180,000/120,000

liquidity ratio=1.5:1