current ratio of a company 2:5 its current liability is 300000 find the net working capital
Answers
Given
Current ratio = 2:5
Current liability = 300000
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Current ratio = current asset ÷ current liabilities
2÷5 = current asset ÷ 300000
cross multiply both
5 (current asset ) = 2 ( 300000)
5 (current asset ) = 600000
current asset = 600000÷5
= 30,00,000
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Net working capital = current asset - current liability
= 30,00,000 - 3,00,000
=27,00,000
Net working capital = 27,00,000
Answer:
Current ratio = current assets ÷ current liabilities 2:5 = current assets ÷ 30000 0.4 = current assets ÷ 30000 0.4 × 30000 = current assets So , current assets = 12000 Working capital = current assets - current liabilities = 12000 - 30000 = (-)18000