Question

Liquid ratio is 2.5 :1. Inventory is 600000. The Current Ratio is 4 : 1 . Find out the Current Liabilities .

Answer 1

Answer:

I think Liquidity ratio doesn't play any role in this question.

Answer 2

$\sf\red{Current \: ratio= 4:1 ; Current \:assets = 4x}$

$\sf\red{ Liquid \: ratio = 2.5:1 ; Liquid \: assets = 2.5x}$

$\sf\red{Liquid \: assets = Current \: assets - Inventories}$

$\implies$$\sf{2.5x = 4x -6,00,000}$

$\implies$$\sf{1.5x =6,00,000}$

$\implies$$\sf{x = \frac{6,00,000}{1.5}}$

$\implies$$\sf{Current \: liabilities\: (x) =4,00,000}$