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Question : Working Capital Rs.6,30,000; Current Assets Rs.8,40,000 and Inventory Rs.3,00,000 (including Loose Tools Rs. 1,05,000). The current ratio will be

Option 1: 3.5:1

Option 2: 2.5:1

Option 3: 7:1

Option 4: None of the above


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 26th Jan, 2024

Correct Answer: 7:1


Solution : Answer = 7:1 

Working Captial = 6,30,000

C.Assets = 8,40,000

Working Capital = C.A. - C. Liab.

6,30,000 = (8,40,000- 1,05,000) - C. liab

C.Liab = 7,35,000 - 6,30,000= 1,05,000

C. Ratio = $\frac{7,35,000}{1,05,000}$=7:1
Hence, the correct option is 3.

 

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