Question

Current assets of a company 18,00,000, current
ratio is 3:1 and liquid ratio is 1:1. Calculate current
liabilities and inventory.​

Answer 1

Given,

Current assets = Rs. 18,00,000

Current ratio = 3:1

Liquid ratio = 1:1

To find,

1. Current liabilities
2. Inventory

Solution,

Current liabilities

Current ratio =  $\frac{Current assets}{Current liabilities}$

According to question,

3:1 = $\frac{18,00,000}{Current liabilities}$

Current liabilities = $\frac{18,00,000}{3}$

Current liabilities = Rs. 6,00,000

Inventory

Quick ratio = $\frac{Quick assets}{Current liabilities}$

According to question,

1:1 = $\frac{Quick assets}{6,00,000}$

Quick assets = Rs. 6,00,000

Inventory = Current assets - Quick assets

                = 18,00,000 - 6,00,000

                = Rs. 12,00,000