Question
If Current Ratio is 2.5:1 and Working Capital is
₹1,50,000, what are Current Assets?Solution
Current Ratio = CA/CL = 2.5/1. Working Capital = CA - CL = ₹1,50,000. Let CL = x, then CA = 2.5x. 2.5x - x = 1.5x = ₹1,50,000. So x = ₹1,00,000 (CL), and CA = 2.5 × ₹1,00,000 = ₹2,50,000.
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