Current Assets are Rs. 7,50,000 and Working Capital is Rs. 2,50,000. Calculate Current Ratio.

SOLUTION

Current Assets = Rs. 7,50,000
Working Capital = Rs. 2,50,000

Working Capital = Current Assets – Current Liabilities
2,50,000 = 7,50,000 – Current Liabilities

Current Liabilities = 7,50,000 – 2,50,000
 = Rs. 5,00,000

Current ratio = Current assets / Current liabilities
= 7,50,000 / 5,00,000
= 1.5: 1


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