Current liabilities of a company are Rs. 75,000. If Current ratio is 4 : 1 and liquid ratio 1 : 1, calculate value of current assets, liquid assets and stock.

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Solution

Current Ratio = 4 : 1

Liquid Ratio = 1 : 1

Current assets
= 4 times current liabilities
= 4 $\times$ Rs. 75,000
= Rs. 3,00,000

Liquid Assets = Current Liabilities = Rs. 75,000

Stock
= Current Assets – Liquid Assets
= Rs. 3,00,000 – Rs. 75,000
= Rs. 2,25,000

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Current liabilities of a company are Rs. 75,000. If Current ratio is 4 : 1 and liquid ratio 1 : 1, calculate value of current assets, liquid assets and stock.

Current Ratio = 4 : 1 Liquid Ratio = 1 : 1 Current assets = 4 times current liabilities = 4 × Rs. 75,000 = Rs. 3,00,000 Liquid Assets = Current Liabilities = Rs. 75,000 Stock = Current Assets – Liquid Assets = Rs. 3,00,000 – Rs. 75,000 = Rs. 2,25,000

Current Ratio = 4 : 1

Liquid Ratio = 1 : 1

Current assets
= 4 times current liabilities
= 4 $\times$ Rs. 75,000
= Rs. 3,00,000

Liquid Assets = Current Liabilities = Rs. 75,000

Stock
= Current Assets – Liquid Assets
= Rs. 3,00,000 – Rs. 75,000
= Rs. 2,25,000