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Current ratio=2:1 working capital = 40000 stock = 30000 calculate current assets, current liabilities, quick ratio

Answer» RATIO = current ASSET / current liabilities  LET current asset = CA current liabilities = CL  2/1     = CA/CL cross multiply  CA  = 2 CL --------------------------------------------------------------------- working CAPITAL = CA - CL 40000 = CA- CL substitute CA = 2 Cl so , 40000 = 2 CL - CL     40000 =  Cl CL = 40000/ 1 CL = 40000 CA = 2 CL CA = 2* 40000 CA = 80000 ------------------------------------------------------------------------- Quick asset = (CA - stock) / CL                     = ( 80000 - 30000) / 40000                     = 50000 / 40000                      = 5/4 Quick asset = 5/4


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