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Question
Current Assets ₹ 5,00,000; Working Capital ₹ 3,00,000. Calculate Current Ratio.
Numerical
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Solution
Working Capital = Current Assets − Current Liabilities
₹ 3,00,000 = ₹ 5,00,000 − Current Liabilities
Current Liabilities = ₹ 5,00,000 − ₹ 3,00,000
= ₹ 2,00,000
Current Ratio = `"Current Assets"/"Current Liabilities"`
Current Ratio = `(₹ 5,00,000)/(₹ 2,00,000)`
= 2.5 : 1
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