Explanation:

- The current ratio is calculated by dividing current assets by current liabilities. A current ratio of 2.5:1 means current assets are 2.5 times current liabilities.

- Working capital is the difference between current assets and current liabilities. Here it is Rs 60,000.

- Current assets - Current liabilities = Working Capital. If you solve, Current liabilities = Rs 40,000.

- Current assets = Current liabilities + Working capital = Rs 100,000.

- Liquid assets are current assets minus inventory. So, liquid assets = Rs 100,000 - Rs 52,000 = Rs 48,000.

- Liquid Ratio (Liquid assets/Current liabilities) = Rs 48,000 / Rs 40,000 = 1.2:1.

Option: 4, 1.2 : 1 is the correct answer.

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