32 :- Capital Employed Rs 20,00,000; Fixed Assets Rs 14,00,000; Current Liabilities Rs 2,00,000. There are no Long – term Investments. Calculate Current Ratio.
Solution :-
Total Assets = Capital Employed + Current Liabilities
= 20,00,000 + 2,00,000
= Rs 22,00,000
Total Assets = Fixed Assets + Current Assets
22,00,000 = 14,00,000 + Current Assets
Current Assets = Rs 8,00,000
Current Ratio = Current Assets/Current Liabilities
= 8,00,000/2,00,000
= 4 : 1