Question

Current ratio 2.5 liquid ratio 1.5 and working capital 60000 what is current assets

Answer 1

The amount should be 84000

Answer 2

Current Asset  =  100000

Explanation:

we know that Current Ratio =$\frac{ Current Asset}{Current Liability}$

$\frac{ Current Asset}{Current Liability}$ =$\frac{ 2.5}{1}$

Current Asset = 2.5 Current Liability

we also Know that

working Liability = Current Asset - Current Liability

               60000 =  2.5 Current Liability- Current Liability

               60000 = 1.5 Current Liability

 Current Liability = 40000

Current Asset  = 60000 +  40000

                        =  100000

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