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Trade Payables Rs. 50,000, Working Capital Rs. 9,00,000, Current Liabilities Rs. 3,00,000. Calculate Current Ratio.

SOLUTION

Working Capital = Current Assets – Current Liabilities
9,00,000 = Current Assets − 3,00,000

Current Assets = 9,00,000 + 3,00,000
= Rs. 12,00,000

Current Ratio = Current Assets / Current Liabilities
= 12,00,000 / 3,00,000
= 4: 1


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