Question

The current ratio of a company is 2.10:1 and liquid ratio of the company 1.90:1 . current assets include inventory of rs 16000 find out liquid assets and working capital

Answer 1

Answer:

A good current ratio is between 1.2 to 2, which means that the business has 2 times more current assets than liabilities to covers its debts. A current ratio below 1 means that the company doesn't have enough liquid assets to cover its short-term liabilities.