Current Assets of a company are 1700000.Its Current Ratio is 2.50 and Liquid Ratio is 0.95 Calculate Current Liabilites Liquid Assets and Inventory.

Explanation

`Current Ratio =("Current Assets")/("Current Liabilities")=(Rs 1700000)/("Current Liabilities")=2.5`
Current Liabilities =`(Rs 1700000)/(2.5)=Rs 680000`
Liquid Ratio =`("Liquid Assets")/("Current Liabilities")=(Liquid Assets)/(Rs 680000)=0.95`
Liquid Assets =`Rs680000xx0.95=Rs 646000`
Inventorey=current Assets -Liquid Assets
=Rs 1700000-Rs 646000=Rs 1054000.