Question : Working Capital Rs.45,000; Total Debt Rs. 1,00,000 and Long-term Debt Rs.70,000.
Current ratio = ?
Option 1: 1.5:1
Option 2: 2.5:1
Option 3: 2:1
Option 4: None of the above
Correct Answer: 2.5:1
Solution : Answer = 2.5:1
Current Ratio = $\frac{\text{Current Assets}}{\text{Current Liabilities}}$
Current ratio =75,000/30,000=2.5:1
Hence, the correct option is 2.