A Company rsquo s Current Assets are Rs 6 00 000 and working capital is Rs 2 00 000 Its Current Rati...........

General Accounting Principles Ratio analysis

A Company’s Current Assets are Rs 6,00,000 and working capital is Rs 2,00,000. Its Current Ratio will be :

3 : 1

1.5 : 1

2:1

4:1

Current Assets are Rs 6,00,000 and working capital is Rs 2,00,000

WORKING CAPITAL= current assets- current liabilities

Rs 2,00,000=Rs 6,00,000 - current liabilities

current liabilities= current assets- working capital

cureent liabilities= Rs. 6,00,000- Rs. 2,00,000

current liabilities= Rs. 4,00,000

current ratio= current asets/ current liabilities

= Rs. 6,00,000/ Rs. 4,00,000

= 1.5 : 1

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