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# Current Ratio is 3.5:1. Working Capital is Rs 90,000. Calculate the Amount of Current Assets and Current Liabilities. - Accountancy

ConceptTypes of Ratios

#### Question

Current Ratio is 3.5:1. Working Capital is Rs 90,000. Calculate the amount of Current Assets and Current Liabilities.

#### Solution

"Current Ratio" = "Current Assets"/"Current Liablities"

"or".3.5 = "Current assets"/"Current Liablities"

or, Current Assets = 3.5 Current Liabilities (1)

Working Capital = Current Assets ­− Current Liabilities

Working Capital = 90,000

or, Current Assets − Current Liabilities = 90,000

or, 3.5 Current Liabilities − Current Liabilities = 90,000 (from 1)

or, 2.5 Current Liabilities = 90,000

"or.Current Liablities" = "90,000"/"2.5" = 36,000

"or.Current Assets" = 3.5 "Current Liablities"

= "3.5 "xx" 36,000"

= 1,26,000

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#### APPEARS IN

Solution Current Ratio is 3.5:1. Working Capital is Rs 90,000. Calculate the Amount of Current Assets and Current Liabilities. Concept: Types of Ratios.
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