Question

Current ratio 2.8
Acid test ratio 1.5 Working capital 162000
Find out current assets, current liability

Answer 1

Explanation:

Given ,

current ratio= 2.8

working capital= 162000

calculate c.A and c.l

now,

current ratio=2.8

working capital= 162000

W.C = C.A - C.L

C.A-C.L =162000 _ equation 1st

Current ratio= C.A / C.L

2.8= C.A/C.L

2.8C.L = C.A_ equation 2nd

using equation 2nd into equation 1st

C.A- C.L= 162000

2.8C.L-C.L = 162000

1.4C.L = 162000

C.L= 162000÷1.4

C.L = 90000

Again, from equation we get

C.A-C.L = 162000

C.A-90000= 162000

C.A = 162000-90000

C.A= 72000

Hence, current asset is 72000and current liability is 90000

Answer 2

Answer:

I). Current Assets = Rs 2,52,000

II). Current Liabilities = Rs 90,000

Explanation:

Solution :

• Working Capital = Rs 1,62,000 (Given)
• Current Ratio = 2.8 (Given)
• Acid-test Ratio = 1.5 (Given)

Current Ratio = $\dfrac{Current \: Assets}{Current \: Liabilities}$

Let,

• Current Liabilities be x
• So,Current Assets = 2.8x

Working Capital = Rs 1,62,000

Working Capital = Current Assets - Current Liabilities

$\longrightarrow$ 1,62,000 = 2.8x - x

$\longrightarrow$ 1,62,000 = 1.8x

$\longrightarrow$ x = 1,62,000 / 1.8

$\longrightarrow$ x = 90,000

Current Liabilities = Rs 90,000

Current Assets = 2.8x

$\longrightarrow$ 2.8 × 90,000

$\longrightarrow$ 2,52,000

Current Assets = Rs 2,52,000

Therefore,

I). Current Assets = Rs 2,52,000

II). Current Liabilities = Rs 90,000