Question

given current ratio= 3:1 working capital 200000 liquid ratio 0.8:1 current assets current liabilities liquid assets stock​

Answer 1

Answer:

current ratio = current assets/current liability

3/1 = C.A./C.L.

C.A.= 3C.L.

Working capital =

current assets - current liability

200000 = C.A. - C.L.

200000= 3C.L. - C.L.

200000 = 2C.L.

C.L. = 200000/2

=100000

C.A. = 3 C.L.

C.A. = 3×100000

=300000

Liquid ratio = liquid assets/ current liability

0.8/1 = L.A./C.L.

0.8/1 = L.A./100000

L.A. = 0.8×100000

=80000

stock = C.A. - L.A.

= 300000-80000

=220000