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Accountancy
Accounting Ratios
Calculate the current ratio if working capital is ₹45000, total debt=₹100000, and long-term debt = ₹70000.
2:1
2.5:1
3:2
1:2
Current ratio = current asset/current liabilities = 75000/30000 = 2.5:1Current liabilities = total debt - long-term debt = 100000 - 70000 = ₹30000Current assets = working capital + current liabilities = 45000 + 30000 = ₹75000