Question

Calculate : (i) Current asset (ii) Liquid assets (iii) Inventory Current ratio = 2.6 : 1 Liquid ratio = 1.5 : 1 Current liabilities = Rs.40,000

Answer 1

Answer:

Answer

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

So, CA= 2.5 CL

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

So, C.A - C.L = 60000

2.5 C.L-CL = 60000

C.L = Rs.40000

Now, C.A = 2.5 x 40000 = Rs.100000

Answer 2

Answer:

(i) Current Asset = Rs 1,04,000

(ii) Liquid Assets = Rs 60,000

(iii) Inventory = Rs 44,000

Explanation:

Given :

• Current ratio = 2.6 : 1
• Liquid ratio = 1.5 : 1
• Current liabilities = Rs.40,000

To find :

• (i) Current asset
• (ii) Liquid assets
• (iii) Inventory

Solution :

★ (i) Current Asset :

$\sf{Current\:Ratio = \dfrac{Current \: Asset}{Current \: Liabilities} \: = \: \dfrac{2.6}{1}}$

$\sf{\longrightarrow{\dfrac{Current \: Asset}{40,000} \: = \: \dfrac{2.6}{1}}}$

Current Asset = 40,000 × 2.6

$\longrightarrow$ 1,04,000

Current Asset = Rs 1,04,000

_________________________

★ (ii) Liquid Assets :

$\sf{Liquid\:Ratio = \dfrac{Liquid \: Assets}{Current \: Liabilities} \: = \: \dfrac{1.5}{1}}$

$\sf{\longrightarrow{\dfrac{Liquid \: Assets}{40000} \: = \: \dfrac{1.5}{1}}}$

$\longrightarrow$ 40,000 × 1.5

$\longrightarrow$ 60,000

Liquid Assets = Rs 60,000

_________________________

★ (iii) Inventory :

Liquid Assets = Current Assets - Inventory

$\longrightarrow$ 60,000 = 1,04,000 - Inventory

$\longrightarrow$ Inventory = 1,04,000 - 60,000

$\longrightarrow$ 44,000

Inventory = Rs 44,000

∴ (i) Current Asset = Rs 1,04,000

(ii) Liquid Assets = Rs 60,000

(iii) Inventory = Rs 44,000