Question

A company shows the following balance sheet figures (₹ in crore): Equity 40, Reserves 20, Term Loan 60, Current Assets 80 and Current Liabilities 40. The bank wishes to assess the short-term liquidity position of the borrower based on standard ratio analysis. What is the Current Ratio?

A 1.25
B 1.50
C 2.00
D 1.75
E 2.25
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