Question

Current ratio is 2.5 working capital is 150000 calculate the amount of current asset and current liabilities

Answer 1

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Answer 2

Current ratio

Explanation:

Given:

Current ratio = 2.5

Working capital = 150,000

Working capital = Current assets - Current liabilities

150,000 = Current assets - Current liabilities

Current liabilities = Current assets - 150,000

Computation:

Current ratio = Current assets / Current liabilities

2.5 = Current assets / Current liabilities

Current assets = 2.5 Current liabilities

Current assets = 2.5 (current assets - 150,000)

Current assets = 2.5 Current assets  - 3,75,000

Current assets = 2,50,000

Current liabilities = 2,50,000 - 150,000 = 1,00,000

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