The current ratio of a firm is 2:1 and quick ratio is 1:1. If liabilities are Rs.1,00,000 then find the value of working capital.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs 1,00,000
Current Ratio= Current Assets / Current Liabilities
2 = Current Assets / 1,00,000
Current Assets = 2,00,000
Working Capital=Current Assets−Current Liabilities
=2,00,000−1,00,000 =1,00,000