Question : A firm's current ratio is 3: 1. Its current liabilities are Rs 80,000 its working capital will be
Option 1: Rs 1,20,000
Option 2: Rs 1,60,000
Option 3: Rs 40,000
Option 4: None of the above
Correct Answer: Rs 1,60,000
Solution : Answer = Rs 1,60,000
C. Ratio = 3:1
C.Liab = 80,000
C.Ratio = $\frac{C.A.}{C.liab}$
$\frac{3.}{1}$= $\frac{C.A.}{80,000}$
C.A. = 2,40,000
Working Capital = 2,40,000- 80,000 = 1,60,000. Hence, the correct option is 2.
Question : The current ratio of the company is 5:2. If its working capital is Rs 1,20,000 its current liabilities will be
Option 1: Rs 80,000
Option 2: Rs 40,000
Option 3: Rs 1,00,000
Question : A firm had current assets of Rs.3,00,000 It then paid trade payables of Rs.50,000. After this payment, the current ratio was 2.5:1 The amount of Current Liabilities and Working Capital after the payment are ___________.
Option 1: Current liabilities are Rs 1,50,000 and working capital are Rs 2,10,000
Option 2: Current liabilities are Rs 2,10,000 and working capital are Rs 1,50,000
Option 3: Current liabilities are Rs 1,00,000 and working capital is Rs 1,50,000
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