Question

Current ratio= 2.5 liquidity ratio =1.5 working capital = 90000 find the inventory , current asset , current liability

Answer 1

i have an attachment for u boi
its my second account

Answer 2

Inventory is 15000, Current Asset is 150000 and Current Liability is 60000

Solution:

Given:

Current Ratio [CR] = 2.5

Liquidity Ratio [LR] = 1.5

Working capital [WC] = 90000

To find:

Inventory [Stock], Current Asset [CA] and Current Liability [CL]

$\begin{array}{l}{\text { Current Ratio }=\frac{C A}{C L}=2.5} \\\\ {\quad \Rightarrow C A=2.5 C L \rightarrow(1)}\end{array}$

We know that, $\text { WC }=\text { CA - CL }$

On substituting the values,

$90000=C A-C L$

On substituting (1) in the above equation,

$90000=2.5 C L-C L\rightarrow 90000=1.5 C L$

$\Rightarrow\frac{90000}{1.5}=C L\rightarrow60000$

So, Current Liabilities = 60000

On substituting CL in Working capital formula we get,

$90000=C A-60000\rightarrow C A=90000+60000\rightarrow C A=150000$

So, Current Assets = 150000

We know that, $\text {Liquidity Ratio }=\frac{C A-S t o c k}{C L}$

$\Rightarrow 1.5=\frac{150000-\text { Stock }}{60000} \rightarrow 1.5 \times 60000=150000-\text { Stock }$

$\Rightarrow 135000=150000-\text { Stock } \rightarrow 150000-135000=\text { Stock } \rightarrow 15000$

So, Stock = 15000