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.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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