Current ratio of a firm is 1.5 and quick ration is 1.2.

Solution

Net Working Capital = Current Assets- Current Liabilities  Quick Ratio= (Current Assets- Inventories) / Current Liabilities =1.2 From this - Current Assets = 1.2 x Current Liabilities + 6 Current Ratio= Current Assets/ Current Liabilities =1.5 From this - Current Assets = 1.5 x Current liabilities  Therefore,  1.5 x Current liabilities = 1.2 x Current Liabilities + 5 0.3 Current Liabilities = 6 Current Liabilities = Rs.20 Lakh Current Assets = 1.5 x 20 = Rs. 30 lakh   Net Working Capital = Current Assets- Current Liabilities = 30-20 = Rs.10 lakh