Question

If current ratio is 2.5,Liquidity ratio is 1.5 and working capital is Rs. 80000. Find out current asset and current liabilities.,

Answer 1

see attachment for ans

Answer 2

Current ratio

Explanation:

Given:

Current ratio = 2.5

Working capital = 80,000

Working capital = Current assets - Current liabilities

80,000 =Current assets - Current liabilities

Current liabilities = Current assets - 80,000

Computation:

Current ratio = Current assets / Current liabilities

2.5 = Current assets / Current liabilities

Current assets = 2.5 Current liabilities

Current assets = 2.5 (current assets - 80,000)

Current assets = 2.5 Current assets  - 2,00,000

Current assets = 1,33,333

Current liabilities = 1,33,333 - 80,000 = 53,333

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