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Question
Working Capital ₹ 1,80,000; Total Debts ₹ 3,90,000; Long-Term Debts ₹ 3,00,000.
Calculate Current Ratio.
Solution
Total Debts = 3,90,000
Long-term Debts = 3,00,000
Current Liabilities = Total Debts − Long-term Debts
= 3,90,000 − 3,00,000 = 90,000
Working Capital = Current Assets − Current Liabilities
1,80,000 = Current Assets − 90,000
Current Assets = 2,70,000
`"Current Ratio" = "Current Assets"/ "Current liability" = 270000/90000 = 3 : 1`
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|
Particulars |
Note No. |
Amount (₹) |
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|
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|
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1 |
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