Question : Working Capital Rs.6,00,000; Trade Payables Rs. 50,000 and other Current Liabilities Rs.1,50,000 Current ratio will be___________.
Option 1: 2:1
Option 2: 2.5:1
Option 3: 4:1
Option 4: None of the above

Question

Question : Working Capital Rs.6,00,000; Trade Payables Rs. 50,000 and other Current Liabilities Rs.1,50,000 Current ratio will be___________.

Option 1: 2:1

Option 2: 2.5:1

Option 3: 4:1

Option 4: None of the above

Team Careers360 · Accepted Answer

Correct Answer: 4:1

Solution : Answer = 4:1

C. Ratio = $\frac{8,00,000}{2,00,000}$= 4:1

Total Current liab = 50,000+1,50,000 = 2,00,000

Working Capital = C.A. -C.liab

6,00,000 =C.A. - 2,00,000

C.A. = 8,00,000.
Hence, the correct option is 3.

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Question : Working Capital Rs.6,00,000; Trade Payables Rs. 50,000 and other Current Liabilities Rs.1,50,000 Current ratio will be___________.Option 1: 2:1Option 2: 2.5:1Option 3: 4:1Option 4: None of the above

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Question : Working Capital Rs.6,00,000; Trade Payables Rs. 50,000 and other Current Liabilities Rs.1,50,000 Current ratio will be___________.
Option 1: 2:1
Option 2: 2.5:1
Option 3: 4:1
Option 4: None of the above