Explanation:

 Liquid Assets are Rs 2,00,000, Inventory is Rs 1,00,000, Prepaid Expenses are Rs 20,000 and Working Capital is Rs 2,40,000.

current assets= liquid assets+ inventory+ prepaid expenses

                      =Rs 2,00,000 + Rs 1,00,000 + Rs 20,000 

                     = Rs.3,20,000

working capital = current assets- current liabilities

Rs 2,40,000.= Rs. 3,20,0000- current liabilities

current liabilities= Rs.3,20,000-Rs. 2,40,000

 current liabilities =RS.80,000

CURRENT RATIO = CURRENT ASSET/ CURRENT LIABILITIES

                              = Rs.3,20,000/ Rs. 80,000

                               = 4:1(answer)