Question

current liabilities of a company were 120000 its current ratio was 3 :1. after wards it purchase goods for 40000 on credit. calculate the revised ratio​

Answer 1

Answer:

current libilities of company =120000

The ratio of the comoany=3:1

There fore =3±1=4

Wards of purchse =40000

The revised current=120000×4=480000

Goods of the credit=40000×4=160000

The current credit ratio=480000:160000

the ratio of the credit=also a3:1 ratio