10 :- Current Assets Rs 20,00,000, Inventories Rs 10,00,000, Working Capital Rs 12,00,000. Calculate Current Ratio.
Solution :-
Working Capital = Current Assets – Current Liabilities
12,00,000 = 20,00,000 – Current Liabilities
Current Liabilities = 20,00,000 – 12,00,000
= Rs 8,00,000
Current Ratio = Current Assets/Current Liabilities
= 20,00,000/8,00,000
= 2.5 : 1