Question

If working capital is 100000 and current ratio 2:1 then the amount of current asset

Answer 1

The amount of Current Assets will be 2,00,000

Explanation:

Given :

Working Capital = 1,00,000

Current Ratio = 2 : 1

To find :

The amount of Current Assets

Solution :

Current Ratio = 2 : 1

★ Current Ratio =

$\dfrac{Current \: Assets}{Current \: Liabilities} \: = \: 2 : 1$

Let,

Current Liabilities = x

Current Assets = 2x

Working Capital = Current Assets - Current Liabilities

⇒ 1,00,000 = 2x - x

⇒ 1,00,000 = x

⇒ x = 1,00,000

Current Liabilities = 1,00,000

• Current Assets = 2x

⇒ 2 × 1,00,000

⇒ 2,00,000

Current Assets = 2,00,000

Therefore, the amount of Current Assets will be 2,00,000

Answer 2

Answer:

The amount of current asset is 2,00,000.

Explanation:

As per the data given in the question,

We have,

working capital is 100000

Current ratio given- 2:1

As we know,

$current\:ratio=\frac{current\:assets}{current\:liabilities}=\frac{2}{1}$

So, let current assets be $2x$

and current liabilities be $x$

Now, we know that,

working capital= current asset - current liabilities

$100000 = 2x - x\\x = 100000$

So, the amount of current asset= $2x = 2\times 100000= 200000$

Hence,

The amount of current asset is 2,00,000.

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