Explanation:

answer is 40,000What would you like to ask?

12th

Accountancy

Accounting Ratios

Liquidity Ratios

Given that,CURRENT Ratio = ...

ACCOUNTANCY

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Asked on December 27, 2019 by

Ajeeta Shaw

Given that,

Current Ratio = 2.5

Acid-test ratio = 1.5

Net working CAPITAL = Rs. 60,000

The value of current liabilities will be ___________ .

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ANSWER

Given,

Current ratio = 2.5 : 1

Quick Ratio = 1.5 : 1

Net working capital = 60,000

Net working capital = Current assets - Current liabilities

Current Assets = Net working capital + Current liabilities

= 60,000 + Current liabilities (1)

Current ratio = Current assets

-------------------------

Current liabilities

Current Assets = Current liabilities x 2.5 (2)

Merging equation (1) and (2)

60,000 + Current liabilities = 2.5Current liabilities

60,000 = 2.5 current liabilities - Current liabilities

60,000 = 1.5 Current liabilities

Current liabilities = 60,000

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1.5

= 40,000

Therefore, current liabilities = 40,000