ILLUSTRATION 14.
Calculate Current Ratio from the following:
Working Capital 6,30,000; Current Assets 78,40,000 and Inventory 4,00,000
(including Loose Tools 1,05,000).
Answers
Answered by
1
Answer:
working capital= current assets-current liabilities
current ratio= 7840000/7210000
Answered by
9
Solution :
Current Ratio = Current Assets / Current Liabilities
Working Capital = 6,30,000
Current Assets = 78,40,000
Working Capital = Current Assets - Current Liabilities
6,30,000 = 78,40,000 - Current Liabilities
Current Liabilities = 78,40,000 - 6,30,000
Current Liabilities = 72,10,000
Current Assets = 78,40,000
Loose Tools = 1,05,000
Current Assets = 78,40,000 - 1,05,000
Current Assets = 77,35,000
Current Ratio = Current Assets / Current Liabilities
Current Ratio = 77,35,000 / 72,10,000
Current Ratio = 1.07 / 1
Current Ratio = 1.07 : 1
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