1 :- Calculate Current Ratio from the following Information :-
Solution :-
Current Ratio = Current Assets/Current Liabilities
= 3,00,000/1,00,000
= 3 : 1
Current Assets = Inventories + Trade Receivables + Advance Tax + Cash and Cash Equivalents
= 1,00,000 + 1,20,000 + 24,000 + 56,000
= Rs 3,00,000
Current Liabilities = Trade Payables + Short – term Borrowings (Bank Overdraft)
= 60,000 + 40,000
= Rs 1,00,000