Question

current ratio of a
company is 3:1 and working capital is 1,00,000. Calculate of current assets and current
liabilities.​

Answer 1

Answer:

Current Assets = 1,50,000, Current Liabilities = 50,000.

Explanation:

Working Capital = Current Assets - Current Liabilities

So Current Assets - Current Liabilities = 1,00,000 -(1)

Current ratio = Current Assets/Current Liabilities

Given Current ratio = 3:1

Current Assets/Current Liabilities = 3/1

Current Assets = 3(Current Liabilities)-(2)

Substitute (2) in (1)

3 Current Liabilities - Current Liabilities = 1,00,000

2Current Liabilities = 1,00,000

Current Liabilities = 50,000 -(3)

Substitute (3) in (1)

Current Assets - 50,000 = 1,00,000

Current Assets = 1,50,000