Question

Current ratio is 2.5 and working capital is rs. 60000, current assets will be

Answer 1

Hi friend,
Solution :-

■CR ( ratio)= 2.5

■WC = $ 60,000

■CR = CA/CL

■25/10 = CA/CL

Let, CA = 25x and CL = 10x

➡So, WC = CA-CL

Or,60,000 = 25x - 10x
Or, x = 60,000/15x
Or, x = 4,000

➡Thus , CA = 25x
Or, CA = 4,000 × 25
Or CA = 1,00,000

➡CL = 10x
Or, CL = 4,000 × 10
Or, Cl = 40,000

So, Current asset will be 1,00,000...i hope it helps you
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