Question

If working capital is rs.1,20,000. Current ratio is 2.5 and liquid ratio is 1.5 find inventory

Answer 1

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❏The current ratio is the classic measure of liquidity. It indicates whether the business can pay debts due within one year out of the current assets.

❏ For example, a ratio of 1.5:1 would mean that a business has £1.50 of current assets for every £1 of current liabilities.

Answer 2

❏The current ratio is the classic measure of liquidity. It indicates whether the business can pay debts due within one year out of the current assets.

❏ For example, a ratio of 1.5:1 would mean that a business has £1.50 of current assets for every £1 of current liabilities.

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