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Calculate the current ratio form the fol...

Calculate the current ratio form the follwing information :
Total assets = Rs. 3,00,000
Non-current liabilities = Rs. 80,000
Shareholders' Funds = Rs. 2,00,000
Non-Current Assets = Rs. 1,60,000
Non - current Investments = Rs. 1,00,000

Text Solution

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Total assets = Non-current assets + Current assets
Rs. 3,00,000 = Rs. 2,60,000 + Current assets
Current assets = Rs. 3,00,000-Rs. 2,60,000 =Rs. 40,000
Total assets = Equity and Liabilities
=Shareholder' Funds + Non-current liabilities + Current liabilities
Rs. 3,00,000 = Rs. 2,00,000 - Rs. 80,000 + Current Liabilities
Current liabilities = Rs. 3,00,000 - Rs. 2,80,000
= Rs. 20,000
Current Ratio `=("Current Assets")/("Current Liabilities")`
`=(Rs.40,000)/(Rs.20,000)=2:1`
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