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Vishnu Dilip Vaikkathukkatil

· started a discussion

· 1 Months ago

Q:101 (Question: 187417.0 )

answer is 45000.
current assets = 30000 * 1.5 = 75000
working capital = current assets - current liabilities
= 75000 - 30000 = 45000

Question:
Current ratio is 2:5.Current liability is Rs.30000.The Net working capital is
Options:
A) Rs.18,000
B) Rs.45,000 
C) Rs.(-) 45,000 
D) Rs.(-)18000
E)

None of these

Solution:

Ans (d)


we have given, current ratio=2:5 and current liabilities=30000


since, current ratio = current assets/current liabilities


2/5 = current assets/30000


current assets = (2*30000)/5 = 60000/5 = 12000


Since, Working capital = Current Assets - Current liabilities


= 12000-30000= -18000

Knowledge Expert

· commented

· 1 Months ago

your solution is wrong.......

See:

we have given, current ratio=2:5 and current liabilities=30000

since, current ratio = current assets/current liabilities

2/5 = current assets/30000

current assets = (2*30000)/5 = 60000/5 = 12000

Since, Working capital = Current Assets - Current liabilities

= 12000-30000= -18000 which is given as answer........

So, given answer is correct.
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