Q. 11. Current Assets ₹ 20,00,00, Inventories ₹ 10,00,000, Working Capital ₹ 12,00,000. Calculate Current Ratio.

Particulars ₹
Current Assets 4,00,000
Inventories 1,00,000
Prepaid Expenses 20,000
Trade Receivables 2,00,000
Current Liabilities 1,40,000

[Ans.: Current Ratio = 2.5 : 1.]

Solution:-