solve please this of accountanacy
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harvinder52:
answer please this question teacher
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Answer:
Explanation:
current ratio=1.5
current ratio implies current assets/current liabilities=1.5
current assets=1.5 current liabilities
working capital =40,000
working capital implies current assets-current liabilities
therefore,
current assets-current liabilities=40,000
1.5 current liabilities- current liabilities = 40,000
0.5 current liabilities=40,000
current liabilities=40,000/0.5
current liabilities=80,000
current assets= 1.5 * 80,000
current assets=1,20,000
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