What will be the current liabilities of the company if its current assets are ₹29745 and the current ratio is 1.5:1, and inventories are ₹8827?
Answer & explanation
Correct answer: option 4
Current ratio= current assets / current liabilities
1.5:1 = 29745/ current liabiltites
Current liabilities = 29745/1.5
= ₹19830