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Question
Trade Payables ₹ 50,000, Working Capital ₹ 9,00,000, Current Liabilities ₹ 3,00,000. Calculate Current Ratio.
Sum
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Solution
Working Capital = Current Assets - Current Liabilities
900000 = Current Assets - 300000
Current Assets = 900000 + 300000 = Rs 1200000
`"Current Ratio" = "Current Assets"/ "Current liability"= 1200000/300000 = 4 : 1`
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