Question

calculate current ratio from the following Working capital 480000 current asset 600000 inventory 400000 and trade receivables 150000​

Answer 1

Answer:

Current assets are given as Rs. 600000

Working capital = current assets- current liabilities

Therefore current Liabilities= current assets - Working capital

Current liabilities = 600000-480000

=Rs.120000

Therefore the current ratio is =current assetscurrent liabilities

=600000120000=5:1

Answer 2

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