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Question -

Current Ratio is 3.5:1. Working Capital is ₹ 90,000. Calculate the amount of Current Assets and Current Liabilities.



Answer -

 

 
or, Current Assets = 3.5 Current Liabilities (1)
Working Capital = Current Assets − Current Liabilities
Working Capital = 90,000
or, Current Assets − Current Liabilities = 90,000
or, 3.5 Current Liabilities − Current Liabilities = 90,000 (from 1)
or, 2.5 Current Liabilities = 90,000
 

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