Current Assets are Rs 7,50,000 and Working Capital

8 :- Current Assets are Rs 7,50,000 and Working Capital is Rs 2,50,000. Calculate Current Ratio.

Solution :-

Working Capital = Current Assets – Current Liabilities
2,50,000 = 7,50,000 – Current Liabilities
Current Liabilities = 7,50,000 – 2,50,000
                             = Rs 5,00,000

Current Ratio = Current Assets/Current Liabilities
                      = 7,50,000/5,00,000
                     = 1.5 : 1

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