Question

Coma particular firm provided the following data for a year

Current ratio 2.5:1

Liquid ratio 1.5:1

Net working capitalrs 300000

What are the current assets and current liabilities of this firm respectively?

Answer 1

Given :

• Current ratio = 2.5 : 1
• Liquid ratio = 1.5 : 1
• Net working capital = Rs.300000

Solution

• As we know that

Current ratio = current assets/ current liabilities

Liquid ratio = Liquid assets/current liabilities

Liquid asset is also known as quick ratio

Now,

→ Working capital = current assets - current liabilities

• Current asset = x
• Current liabilities = x - 300000

Current ratio = 2.5/1

→ current assets/current liabilities = 2.5/1

→ x/x - 300000 = 2.5/1

→ 2.5(x - 300000) = x

→ 2.5x - 750000 = x

→ 2.5x - x = 750000

→ 1.5 x = 750000

→ x = 750000/1.5

→ x = 500000

Current assets = 500000

Current liabilities = x - 300000 = 500000 - 300000 = 200000

Answer 2

Answer:

Explanation:

given :

• ratio = 2:5:1

• ratio = 1.5:1

• working = rs 300000

to find :

• current assets and current liabilities of this firm respectively = ?

• current assets and current liabilities of this firm respectively = ?

solution :

• please check the attached file

• Hence, the answer of assets = 500000

• The answer of liabilities = 200000

knowledge required :

• we have to find the assets and liabilities

• in this question first we the number then we will minus it

• then the 300000 multiply by 2.5

• then we divide so the answer comes