Calculate the current ratio if working capital is ₹45,000, total debt = ₹1,00,000, and long-term debt = ₹70,000.

2.5:1

The correct answer is option 2- 2.5:1.

Current liabilities = total debt - long-term debt
                            = 1,00,000 - 70,000
                            = ₹30,000

Current assets = working capital + current liabilities
                         = 45,000 + 30,000
                         = ₹75,000

Current ratio = current asset/current liabilities
                     = 75,000/30,000
                     = 2.5:1