Question

If the current ratio is 2.5, Liquidity ratio is 1.5 and working capital Rs.80,000, find out current assets and current liabilities.

Answer 1

WC=CA-CL

80000=CA-CL

CA=80000+CL

CR=CA/CL

2.5=CA/CL

2.5=80000+CL/CL

2.5CL=80000+CL

1.5CL=80000

CL=53,334

CA=80000+53334

CA= 1,33,334