Explanation:

Current Ratio is 2.5 : 1 and its Working Capital is Rs 60,000. If its Inventory is Rs 52,000

liquid ratio= quick assets/ current liabilities

                = RS. 48,000(WN2)/ Rs.40,000(WN1)

                = 1.2 : 1(ANSWER)

working note1 for current liabilities

CURRENT RATIO= CURRENT ASSETS/ CURRENT LIABILITIES

CA = 2.5

CL      1

CA= 2.5CL

WORKING CAPITAL= CURRENT ASSETS- CURRENT LIABILITIES

              Rs 60,000= CA - CL

(PUTTING VALUE OF CA=2.5CL)

Rs60,000= 2.5CL-CL

Rs60,000=1.5 CL

Rs60,000=CL

     1.5

Rs 40,000

working note 2 for current assets

CURRENT ASSETS= WORKING CAPITAL + CURRENT LIABILITIES

                                 = Rs.60,000+Rs. 40,000

CURRENT ASSETS= Rs. 1,00,000

Working Note 3 for liquid assets

quick ratio = liquid Assets/ current liabilities

liquid assets= current assets-inventory

                    =Rs. 1,00,000-RS. 52,000

                     =RS. 48,000