Calculate Current Assets when,

Inventory Turnover Ratio - 4 times

Closing inventory is ₹20,000 more than opening inventory

Revenue from operations is ₹3,00,000,

Gross Profit Ratio 20% of revenue from operations.

Current Liabilities ₹40,000

Quick Ratio 0.75 : 1

₹1,00,000

The correct answer is option 2- ₹1,00,000.

Gross profit ratio = Gross profit/Revenue from operations x 100
20 = Gross profit/3,00,000 x 100
Gross profit = 20 x 3,00,000/100
                  = 60,000

Cost of revenue from operations = Revenue from operations -Gross profit
                                                = 3,00,000 - 60,000
                                                = 2,40,000

Inventory turnover ratio = Cost of revenue from operations/ Average inventory
 4 = 2,40,000 / Average inventory
Average inventory = 2,40,000/4
                            = 60,000

Closing inventory is ₹20,000 more than opening inventory

Let opening inventory = x
Closing inventory = x + 20,000

Average inventory = (Opening inventory + Closing inventory)/2
60,000 = (x + x +20,000)/2
60,000 = (2x + 20,000)/2
60,000 = x + 10,000
x = 50,000

Opening inventory = 50,000
Closing inventory = 50,000 + 20,000
                          = 70,000

Quick ratio = 0.75 :1
Quick ratio = Liquid assets/ Current liabilities
0.75/1 = Liquid assets/40,000
Liquid assets = 40,000 x 75/100
                   = 30,000

Currents assets = Liquid assets + Closing inventory
                        = 30,000 + 70,000
                        = 1,00,000