if current ration is given as 2.5, liquid assets are 60,000 then the value of stock will be?
Answers
Answered by
8
Current Ratio = Current Assets (C.A)/ Current Liabilities (C.L) = 2.5
So, CA= 2.5 CL
Now, Working Capital = Current Assets(C.A) minus Current Liabilities (C.L) = Rs.60000
So, C.A - C.L = 60000
2.5 C.L-CL = 60000
C.L = Rs.40000
Now, C.A = 2.5 x 40000 = Rs.100000
Answered by
0
Answer:
The answer is INR 100000.
Explanation:
i) Current ratio = current assets/ current liabilities
Hence,
2.5 = CA / CL
CA = 2.5CL
ii) Working capital = Current assets - Current liabilities
Hence,
60,000 = CA - CL = 2.5CL - CL
CL = INR 40000
iii) Hence,
Current assets = 2.5 x Current liabilities
= 2.5 x 40000 = INR 100000
iv) Value of stock will be INR 100000.
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