On the basis of following information, answer the questions: Particulars Amount (₹) Inventory 100000 Total current assets 160000 Shareholders funds 400000 13% debentures 300000 Current liabilities 100000 Net profit before tax 351000 Cost of revenue from operations 500000

On the basis of the above case, current ratio is:

2:1 2:3 1:2 1.6:1

1.6:1

Current ratio = Current assets/ Current liabilities                      = 160000/100000                      = 1.6:1