Question
A borrower shows Current Assets ₹120 crore, Current Liabilities ₹80 crore, Inventory ₹70 crore, Receivables ₹40 crore. Stock audit reveals obsolete inventory of ₹20 crore. What is the adjusted Current Ratio?
Solution
Adjusted CA = 120 – 20 = 100 CR = 100 / 80 = 1.25
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