Question

< Working Capital ? 1,50,000; Total Debts 3,25,000; Long-term Debts * 2,50,000.
Illustration 8.
Calculate Current Ratio from the following:​

Answer 1

Answer:

13:10 is the ratio for total debts and long term debts

Explanation:

Because there is no secured liability so that's why we are dividing the liability in the ratio. note it that capital is also liability but we will pay it after paying the other liability.