Study the information given below carefully and answer the following question.

Current Ratio for the year 2020 will be_______________

2.32:1

The correct answer is option 3- 2.32:1.

Current Assets = Inventory + Trade Receivables + Cash In hand + Prepaid Expenses
                        = 3,00,000 + 12,00,000 + 11,00,000 + 17,00,000
                        = 43,00,000

Current Liabilities = Trade Payables + Outstanding Expenses
                            = 50,000 + 18,00,000
                            = 18,50,000

Current Ratio = Current assets/Current liabilities
                      = 43,00,000/18,50,000
                      = 2.32 :1