Current Ratio = \(\frac {\textit{Current Assets}}{\textit{Current Liabilities}} \)
Or, 3.5 = \(\frac {\textit{Current Assets}}{\textit{Current Liabilities}} \)
or, Current Assets = 3.5 Current Liabilities (1)
Working Capital = Current Assets – Current
Liabilities Working Capital = 90,000
or, Current Assets – Current Liabilities = 90,000
or, 3.5 = Current Liabilities – Current Liabilities = 90,000 (from I)
or, 2.5 Current Liabilities = \(\frac{90,000}{2.5}\) = 36,000
or Current Assets = 3.5 Current Liabilities
= 3.5 × 36,000 = 1,26,000.