answer this question
CURRENT ASSETS = LIQUID ASSETS + INVENTORIES - LOOSE TOOLS + PREPAID EXPENSES = 1,50,000 + 70,000 - 40,000 + 20,000 = 2,00,000
WORKING CAPITAL = CURRENT ASSETS - CURRENT LIABILITIES
1,20,000 = 2,00,000 - CURRENT LIABILITIES
CURRENT LIABILITIES = 2,00,000 - 1,20,000 = 80,000
CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES = 2,00,000 / 80,000 = 2.5 : 1
LIQUID RATIO = LIQUID ASSETS / CURRENT LIABILITIES = 1,20,000 / 80,000 = 1.5 : 1
WORKING CAPITAL = CURRENT ASSETS - CURRENT LIABILITIES
1,20,000 = 2,00,000 - CURRENT LIABILITIES
CURRENT LIABILITIES = 2,00,000 - 1,20,000 = 80,000
CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES = 2,00,000 / 80,000 = 2.5 : 1
LIQUID RATIO = LIQUID ASSETS / CURRENT LIABILITIES = 1,20,000 / 80,000 = 1.5 : 1