Question

Current ratio = 2.5:1 Liquid ratio = 1.5:1 Current liability = Rs.50,000 Find out the current assets

Answer 1

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