7 :- Working Capital Rs 9,00,000; Total Debts (Liabilities) Rs 19,50,000; Long – term Debts Rs 15,00,000. Calculate Current Ratio.
Solution :-
Current Liabilities = Total Liabilities – Long – term Debts
= 19,50,000 – 15,00,000
= Rs 4,50,000
Working Capital = Current Assets – Current Liabilities
9,00,000 = Current Assets – 4,50,000
Current Assets = 9,00,000 + 4,50,000
= 13,50,000
Current Ratio = Current Assets/Current Liabilities
= 13,50,000/4,50,000
= 3 : 1