Answers

2015-12-27T14:56:51+05:30

This Is a Certified Answer

×
Certified answers contain reliable, trustworthy information vouched for by a hand-picked team of experts. Brainly has millions of high quality answers, all of them carefully moderated by our most trusted community members, but certified answers are the finest of the finest.
Here is your solution:
Liquid assets (LA) = Current assets (CA) – Stock = CA – Rs. 78000

Now, CA/CL, where current ratio is 2.5:1 CA = 2.5CL
Liquid ratio is 1.2:1
LA/CL = 1.2:1
LC/CL = 1.2:1
LA=1.2 CL
CA – Rs 78000 = 1.2CL equation 1
2.5CL – Rs 78000 = 1.2CL equation 2
2.5CL – 1.2CL = 78000
1.3CL = 78000
CL = 78000 / 1.3 = Rs 60,000

Put the value in an equation 2, we get CA = 2.5 * 60,000 = Rs 1,50,000

Put the value in an equation 1, we get LA = 1,50,000 – 78000 = Rs, 72,000
0