Question

What will be the Current Ratio from the following?

Liquid Assets ₹ 1,00,000; Inventory ₹ 90,000 (including loose tools ₹ 15,000); Prepaid Expenses ₹ 5,000; Working Capital ₹ 1,20,000.

विकल्प

• 1.5 : 1

• 3.25 : 1

• 3 : 1

• 1.625 : 1

Answer 1

3 : 1

Explanation:

Current Assets = Liquid Assets + Inventory (excluding loose tools) + Prepaid Expenses

= 1,00,000 + 75,000 + 5,000

= ₹ 1,80,000

Current Liabilities = Current Assets − Working Capital

= 1,80,000 − 1,20,000

= ₹ 60,000

Current Ratio = `"Current Assets"/"Current Liabilities"`

= `(1,80,000)/(60,000)`

= 3 : 1