Read the information carefully and answer the questions.

Current Ratio of the firm is:

1.29:1

The correct answer is option 4- 1.29:1.

Current assets = Trade Receivables + Cash and Cash Equivalents + Inventories + Advance Tax
                      = 50,000 + 30,000 + 50,000 + 4,000
                      = 1,34,000

Current liabilities = Trade Payables + Bank overdraft
                         = 1,00,000 + 4,000
                         = 1,04,000

Current ratio = Current assets/Current liabilities
                   = 1,34,000/1,04,000
                   = 1.288 :1 or 1.29:1