What will be the Current ratio if Working Capital is ₹720000, Trade Payables ₹40000, and Other Current Liabilities are ₹200000?
Options:
1:1
2:1
4:1
3:2
Correct Answer:
4:1
Explanation:
Total current liabilities= 200000+40000 = ₹240000 Current assets= Working capital + Current liabilities = 720000+240000 = ₹960000 Current ratio= Current assets/ Current liabilities = 960000/240000 = 4:1