Question

Calculate current ratio working capital 600000 bills payable 150000 current liabilities 150000

Answer 1

Explanation:

Given,

w.c = 600000

c.l= 150000

Now,

working capital = C.A - C.L

6000000. = C.A - 150000

600000 + 150000 = C.A

750000 = C.A

Now ,

Current Ratio = C.A/ C.L

= 750000%150000

= 5:1