Current Ratio is 2.5, Working Capital is ₹ 1,50,000. Calculate the amount of Current Assets and Current Liabilities.

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Solution

$\begin{array}{l} C u r r e n t R a t i o = \frac{C u r r e n t A s s e t s}{C u r r e n t L i a b i l i t i e s} \\ 2 .5 = \frac{Current Assets}{Current Liabilities} \\ Current Assets = 2 .5 Current Liabilities \\ W o r k i n g C a p i t a l = C u r r e n t A s s e t s - C u r r e n t L i a b i l i t i e s \\ 1,50,000 = 2 .5 Current Liabilities - Current Liabilities \\ Current Liabilities = \frac{1, 50, 000}{1 .5} \\ Current Liabilities = Rs 1,00,000 \\ Current Assets = 2 .5 Current Liabilities \\ Current Assets = 2 .5 \times 1, 00, 000 = Rs 2,50,000 \end{array}$

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Current Ratio is 2.5, Working Capital is ₹ 1,50,000. Calculate the amount of Current Assets and Current Liabilities.

Current Ratio is 2.5, Working Capital is ₹ 1,50,000. Calculate the amount of Current Assets and Current Liabilities.