Question

if current raio 3:1 and working capital rs 40000 what will be the amount of current assets ?​

Answer 1

Step-by-step explanation:

Current Ratio = 3:1

\frac{current \: assets}{current \: liabilities}

currentliabilities

currentassets

Let Current Assets be '3x' and

Current Liabilities be 'x'

Working Capital= Current Assets - Current Liabilities

4,00,000= 3x-x

4,00,000= 2x

Current Liabilities= x= 2,00,000

Current Assets= 3x= 3×2,00,000= 6,00,000

Quick Assets= Current Assets - Inventory

= 6,00,000 - 2,50,000

= 3,50,000

Quick Ratio=

\frac{quick \: assets}{current \: liabilities}

currentliabilities

quickassets

=

\frac{350000}{200000}

200000

350000

= 1.75:1

I hope the answer is correct