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Illustration 4:, The following information of a company is given:, Current Ratio — 2.5:1; Acid-test Ratio — 1.5:1; Current Liabilities - Rs. 1,00,000, , Find out: (a) Current Assets (b) Liquid Assets (c) Inventory, Solution:, . _ Current Assets _, a) Current Ratio = “Current Liabilities, Current Assets, 20)" 1,00,000, , Current Assets = 1, 00,000 x 2.5 = %2, 50,000, , . . ___Liquid Assets. _ Liquid Assets, b) Acid-test Ratio = Current Liabilities ~'>~ 1,00,000, , Liquid Assets = 1, 00,000 x 1.5= % 1, 50,000, (c) Inventory = Current Assets - Liquid Assets, = 2, 50,000 — 1, 50,000, % 1, 00,000, , Illustration 5:, , Given: Current Ratio = 2.8; Acid-test Ratio = 1.5; Working Capital = = 1, 62,000, Find out: (a) Current Assets (b) Current Liabilities (c) Liquid Assets, , Solution:, , Let the Current Liabilities be x, then the Current Assets will be 2.8x, , , , Working Capital = Current Assets — Current liabilities, 1, 62,000 = 2.8x - 1x, , 1, 62,000 = 1.8x, , x = 162,000 _ 90,000, , Current Liabilities = ~ 90,000, Current Assets = 90,000 x 2.9 = % 2, 52,000, , ASIA RSURAti Liquid Assets __Liquid Assets, cre-test Kalo = Current Liabilities 90,000, , Liquid Assets = 90,000 x 1.5 = % 1,35,000, , 54 | MANAGEMENT ACCOUNTING VI SEM B.COM