Current ratio is 4:1, net working capital is rs.30,000. Find the amount of current assets
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Current Asset = 40000
4/1 = CA/CL (Cross Multiply)
4CL = CA
Working Capital = CA - CL
30000 = 4CL - CL (Because CA is equal to 4CL)
30000 = 3CL
CL = 30000/3
CL = 10000
Therefore,
Net Working Capital = Current Asset - Current Liablities
30000 = CA - 10000
CA = 40000
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