SOLUTION
Current ratio = Current assets / Current liabilities
= 2.5 / 1
Quick ratio = Liquid assets / Current liabilities
= 1 / 1
Current Assets = 5,00,000
Current ratio = Current assets / Current liabilities
= 5,00,000 / 2,00,000
Liquid Assets = Current Liabilities × 1
= 2,00,000
Inventory = Current Assets − Quick Assets
= 5,00,000 − 2,00,000
= 3,00,000