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    Question

    Champion Ltd. define following data for calculating

    Current Ratio: Current Assets Rs.20,00,000 , Inventories Rs.10,00,000 , Working Capital Rs.12, 00,000.
    A 3.5 : 1 Correct Answer Incorrect Answer
    B 2.5 : 1 Correct Answer Incorrect Answer
    C 1 : 1 Correct Answer Incorrect Answer
    D 1 : 2 Correct Answer Incorrect Answer
    E 1 : 3 Correct Answer Incorrect Answer

    Solution

    Working capital = Current asset – Current Liability 1200000 = 20,00,000- current liability CL = 800000 CR = 2000000/800000 = 2.5 times

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