Question

Find current assets ,liquid assets and stock given current liability 30000 current ratio 2.25 times liquid ratio 1.25 times

Answer 1

Explanation:

Net working capital = Current assets - Current liabilities

Rs.30000 = Current assets - Current liabilities

Therefore, Current assets = Current liabilities + Rs.30000

Current ratio = Current assets/ Current liabilities

2.5 = [Current liabilities + Rs.30000] / Current liabilities

 2.5 Current liabilities  = Current liabilities + Rs.30000

Current liabilities = Rs.30000/1.5

Therefore, Current liabilities = Rs.20000

Now,

Current assets = Current liabilities + Rs.30000

                          = Rs.20000+Rs.30000

                          =Rs.50000

Now, Quick Ratio = Quick Assets/ Current liabilities

                     1.5   = Quick Assets/ 20000

Therefore,

                  Quick Assets = Rs.30000

Quick Ratio = Quick Assets/ Current liabilities

Quick Ratio = [Current Assets - Stock ]/ Current liabilities

            1.5 = [50000 - Stock] / 20000

Stock = 50000−30000

          = Rs.20000

do this ok

Answer 2

Explanation:

Solution :

$\sf{Current Ratio = \dfrac{Current \:Assets}{Current \: Liabilities } = \dfrac{2.25}{1}}$

Current Liabilities = 30,000

$\Rightarrow{\sf{Current Ratio = \dfrac{Current \: Assets }{30,000} = \dfrac{2.25}{1}}}$

Current Assets = 30,000 × 2.25

⇒ 67,500

Current Assets = 67,500

___________________________

$\sf{Liquid \: Ratio = \dfrac{Liquid\: Assets}{Current\:Liabilities} = \dfrac{1.25}{1}}$

$\sf{Liquid \: Ratio = \dfrac{Liquid\:Assets}{30,000} = \dfrac{1.25}{1}}$

Liquid Assets = 30,000 × 1.25

⇒ 37,500

Liquid Assets = 37,500

____________________________

Liquid Assets = Current Assets - Stock

⇒ 37,500 = 67,500 - Stock

⇒ Stock = 67,500 - 37,500

⇒ 30,000

Stock = 30,000

Therefore,

• Current Assets = 67,500
• Liquid Assets = 37,500
• Stock = 30,000