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Question : A company's working capital is Rs 2,000,000, and its current ratio is 3:1. What current assets will there be?

Option 1: Rs. 5,00,000

Option 2: Rs. 3,00,000

Option 3: Rs. 1,00,000

Option 4: Rs. 1,50,000


Team Careers360 2nd Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Rs. 1,50,000


Solution : Current Ratio =  Current Assets/Current Liabilities
3 = x/y
3y = x
CA – CL = WC
x – y = 2,00,000
3y – y = 2,00,000
2y= 2,00,000
2y = 1,00,000
y = 50,0000
Since x= 3y so, x= 3 * 50,000 i.e. 1,50,000 will be the correct answer.
Hence, the correct option is 4.

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