Question

Current Ratio 4; Liquid Ratio 2.5; Inventory  ₹  6,00,000. Calculate Current Liabilities, Current Assets and Liquid Assets.

Answer 1

`"Current Ratio" = "Current Assets"/ "Current liability" = 4/1`

`"Liquid Ratio" = "Liquid Assets "/"Current Liabilities" = 2.5/1`

Inventory = 6,00,000

Let Current Liabilities be = x

Current Assets = 4x

Quick Assets = 2.5x

Stock = Current Assets − Quick Assets

6,00,000 = 4x − 2.5x

x = 4,00,000

Current Assets = 4x = 4 × 4,00,000 = 16,00,000

Liquid Assets = 2.5x = 2. 5× 4,00,000 = 10,00,000