What will be the Current ratio if Working Capital is ₹720000, Trade Payables ₹40000, and Other Current Liabilities are ₹200000?
Answer & explanation
Correct answer: option 3
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