Current ratio 2.5 liquid ratio 1.5 and working capital 60000 what is current assets current liabilities liquid assets stock
Answers
Current ratio=2.5
It means if current assets are 2.5, current liabilities are 1.
Hence, working capital=2.5_1=1.5
If working capital is 1.5, current assets are =2.5
If working capital is 1, current assets are =2.5÷1.5
If working capital is 6000, current assets are =2.5÷1.5×6000=10000
Current liabilities =10000_6000=4000
Liquid ratio =liquid assets ÷current liabilities
1.5÷1 = liquid assets÷ 4000
Liquid assets =1.5× 4000=6000 answer
Current ratio
Explanation:
Given:
Current ratio = 2.5
Liquidity ratio = 1.5
Working capital = 60,000
Stock = ?
Current assets = ?
Current liabilities = ?
Liquid assets = ?
Computation:
Working capital = Current assets - Current Liabilities
60,000 = Current assets - Current Liabilities
Current assets = 60,000 + Current liabilities
Current ratio = Current assets / Current liabilities
2.5 = (60,000 + Current liabilities) / Current liabilities
2.5 Current liabilities = 60,000 + Current liabilities
1.5 Current liabilities = 60,000
Current liabilities = 40,000
Current assets = 60,000 + Current liabilities
Current assets = 60,000 + 40,000
Current assets = 100,000
Liquid ratio = (Current assets - Stock) / Current liabilities
1.5 = (100,000 - Stock) / 40,000
60,000 = 100,000 - Stock
Stock = 40,000
Liquid assets = Current assets - Stock
Liquid assets = 100,000 - 40,000
Liquid assets = 60,000
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