Question

liquid ratio is 1.5 is to 1 current assets are 300000 current liabilities are 120000 determine the value of inventories​

Answer 1

Answer:

Correct option is

C

Rs.1,00,000

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