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Question
Total Assets ₹22,00,000; Fixed Assets ₹10,00,000; Capital Employed ₹20,00,000. There were no Long-term Investments.
Calculate Current Ratio.
Sum
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Solution
Current Assets = Total Assets − Fixed Assets
Fixed Assets = 10,00,000
Total Assets = 22,00,000
∴ Current Assets = 22,00,000 − 10,00,000 = 12,00,000
Current Liabilities = Total Assets − Capital Employed
= 22,00,000 − 20,00,000 = 2,00,000
`"Current Ratio" = "Current Assets"/ "Current liability" = 1200000/200000 = 6 : 1`
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