Question

Find out working capital, if current ratio is 3:1 & cl rs25,000

Answer 1

Answer:

Working Capital = 50,000

Explanation:

Working capital = current asset - current liabilities

Let Current asset = CA

Current liabilities =CL

Current ratio = CA\CL

              3/1 = CA/25000

                CA= 25000*3

                      =75,000

Current asset = 75,000

Working capital = CA-CL

                          = 75,000-25,000

                           =50,000

Working Capital = 50,000

Answer 2

we know, current ratio=current asset

current liability

or, 3= current asset

1 25000

or, current asset = 75000

working capital =current asset- current liability

=75000 - 25000

therefore, working capital= ₹ 50,000