Question : Working Capital Rs.6,30,000; Current Assets Rs.8,40,000 and Inventory Rs.3,00,000 (including Loose Tools Rs. 1,05,000). The current ratio will be
Option 1: 3.5:1
Option 2: 2.5:1
Option 3: 7:1
Option 4: None of the above
Answer (1)
26th Jan, 2024
Correct Answer: 7:1
Solution : Answer = 7:1
Working Captial = 6,30,000
C.Assets = 8,40,000
Working Capital = C.A. - C. Liab.
6,30,000 = (8,40,000- 1,05,000) - C. liab
C.Liab = 7,35,000 - 6,30,000= 1,05,000
C. Ratio = $\frac{7,35,000}{1,05,000}$=
7:1
Hence, the correct option is 3.
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