Calculated the current ratio from the following information.

1.	Calculated the current ratio from the following information.
Answer» Current ratio = (Current assets)/(Current liabilities) Current assets = current investment + Inventories + Trade debtors + Bills receivable + Cash and cash equivalents C. A = 40,000 + 2,00,000 + 1,20,000 + 80,000 + 10,000 = 4,50,000 Current liablities = Trade crditors + Bills payable + Expenses payable C.L = 80,000 + 50,000 + 20,000 = 1,50,000 Current ratio = 4,50,000/1,50,000 Current ratio = 3:1

Answer»

Current ratio = (Current assets)/(Current liabilities)

Current assets = current investment + Inventories + Trade debtors + Bills receivable + Cash and cash equivalents

C. A = 40,000 + 2,00,000 + 1,20,000 + 80,000 + 10,000

= 4,50,000

Current liablities = Trade crditors + Bills payable + Expenses payable

C.L = 80,000 + 50,000 + 20,000

= 1,50,000

Current ratio = 4,50,000/1,50,000

Current ratio = 3:1

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