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
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.
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 ___________.
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
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