The current ratio of a company is 1.5 times. Calculate the cash from the following information:
Current liabilities             = Rs.50,000
Inventory             = Rs.25,000
Receivables            = Rs.35,000
Prepaid expenses        = Rs.5,000
Current Ratio = Current assets/current liabilities Thus, current assets = current ratio * current liabilities                                                = 1.5 * Rs.50,000                                                = Rs.75,000 Current assets = inventory + receivables + prepaid expenses + cash Thus, Rs.75,000 = Rs.25,000 + Rs.35,000 + Rs.5,000 + cash Cash = Rs.10,000
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