Trade Payables Rs 50,000, Working Capital Rs 9,00,000

11 :- Trade Payables Rs 50,000, Working Capital Rs 9,00,000, Current Liabilities Rs 3,00,000. Calculate Current Ratio.

Solution :-

Working Capital = Current Assets – Current Liabilities
9,00,000 = Current Assets – 3,00,000
Current Assets = 9,00,000 + 3,00,000
                        = Rs 12,00,000

Current Ratio = Current Assets/Current Liabilities
                      = 12,00,000/3,00,000
                      = 4 : 1

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