If the current ratio is 2:1 and working capital is Rs 60,000 what is the value of current assets?
Answer: Rs. 120000
Explanation
current ratio = current assets (C.A)/ Current
Liabilities (C.L) = 2/1
s, CA = 2 CL
Now working capital = current assets (CA) minus Current Liabilities (C.L) = Rs 60000
So, C.A - C.L = 60000
2 C.L - CL = 60000
C.L = Rs. 60000
Now C.A = 2 x 60000
C.A = Rs. 120000
ND5-09-2023ma
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