current ratio 5:2, working capital rs81,000; calculate the value of current assets of current liabilities
Answers
working capital = current assets - current liabilities
we have working capital 81000
and current ratio 5:2
let current assets = 5x
current liabilities = 2x
wc = can - cl
81000= 5x-2x
81000= 3x
81000/3= x
so value of x = 27000
current assets = x*5
27000*5= 135000
current liabilities= x*2
27000*2= 54000 ans
Current Assets = Rs. 135000
Current Liabilities = Rs. 54000
Given :
- Current ratio 5 : 2
- Working capital Rs. 81,000
To find :
Value of Current Assets and Current Liabilities
Solution :
Step 1 of 2 :
Form the equation to calculate Current Assets and Current Liabilities
Here it is given that Current ratio is 5 : 2
We know that Current Ratio formula = Current Assets / Current Liabilities.
Let Current Assets = Rs. 5x and Current Liabilities = Rs. 2x
Working Capital
= Current Assets - Current Liabilities
= Rs. 5x - Rs. 2x
= Rs. 3x
Since Working capital Rs. 81,000
By the given condition
3x = 81000
Step 2 of 2 :
Calculate Current Assets and Current Liabilities
3x = 81000
⇒ x = 81000/3
⇒ x = 27000
Current Assets
= Rs. 5x
= Rs. (5 × 27000)
= Rs. 135000
Current Liabilities
= Rs. 2x
= Rs. (2 × 27000)
= Rs. 54000
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