Question

Current assest is 100000, acid test ratio is 2:1, current ratio is 4:1 find out working capital

Answer 1

if current assets = 100000

and current ratio = 4:1

= current assets/ current liabilities

if current assets 100000 division by their ratio 4 so that we get current liabilities which is 25000

so working capital current assets - current liabilities

100000-25000= 75000 wc