Calculate current ratio from the following information-
| PARTICULARS | AMOUNT (₹) |
| Total assets | 800000 |
| Fixed assets | 540000 |
| Non-current investments | 110000 |
| Shareholder's funds | 600000 |
| Non-current liabilities | 80000 |
Answer & explanation
Correct answer: option 2
Current ratio = Current asset/ current liabilities
= 150000/120000
= 1.25:1
Current liabilities = Total assets - shareholders funds - non-current liabilities
= 800000 - 600000 -80000
= ₹120000
Current assets = Total assets - Fixed assets - Non-current investments
= 800000 - 540000 - 110000
= ₹150000
* Total of asset side = Total of (equity + liabilities) side.