Champion Ltd. define following data for calculating Current Ratio:
Current Assets Rs.20,00,000 ,
Inventories Rs.10,00,000 ,
Working Capital Rs.12, 00,000.
Working capital = Current asset – Current Liability 1200000 = 20,00,000- current liability CL = 800000 CR = 2000000/800000 = 2.5 times
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