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Current Ratio (CR) = Current Assets/ Current Liabilities As such CR at present is = 20,00,000/1080000 = 1.85 Current Assets: Cash + Accounts Receivables + Inventory =100,000 + 900,000 + Rs.10,00,000 = Rs. 20,00,000 Current Liabilities: Bank Overdraft + Trade Creditors =Rs. 900,000 + 180,000 = Rs. 10,80,000
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