Question

Current ratio of a firm is 4:3 and working capital 60000.calculate current assets and current liabilities.

Answer 1

Answer:

current assets=240000

current liabilities=180000

Explanation:

current ratio =current assets

current liabilities

working capital=60000

as current ratio is given 4:3 it can be said that current assets=4x,

current liabilities =3x

working capital=current assets-current liabilities

so, 60000=4x-3x

x= 60000

current assets=4x= 4×60000= 240000

current liabilities=3x= 3×60000=180000.

hope it helps you.