Question

A Business has a Current Ratio of 3 : 1 and a Quick Ratio of 1.2 : 1 . Working Capital is Rs 1,80,000. Calculate Current Assets and Stock.

Answer 1

Let Current Assets = 3 X 

 Current Liabilities = X

Working Capital = Current Assets – Current Liabilities

So , Current Assets = 3 (Rs 90,000) = Rs 2,70,000 

Current Liabilities = X = Rs 90,000