Question : Working Capital Rs.4,50,000; Current Assets Rs.6,00,000; Inventory Rs.4,00,000 and Trade Receivables Rs. 1,50,000. Current ratio will be
Option 1: 2:1
Option 2: 3:1
Option 3: 4:1
Option 4: None of the above
Correct Answer: 4:1
Solution : Answer = 4:1
C. Ratio= $\frac{\text{Current Assets}}{\text{Current Liab}}$
= $\frac{6,00,000}{1,50,000}$ = 4:1
Working Capital = C.Assets -C.Liab.
4,50,000 = 6,00,000 - C.liab
C.laib = 1,50,000. Hence, the correct option is 3.
Question : Working Capital Rs.6,00,000; Trade Payables Rs. 50,000 and other Current Liabilities Rs.1,50,000 Current ratio will be___________.
Question : A firm had current assets of Rs.3,00,000 It then paid trade payables of Rs.50,000. After this payment, the current ratio was 2.5:1 The amount of Current Liabilities and Working Capital after the payment are ___________.
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