= 1 If Current Liabilities Current Assets= 2.5 It means the difference or Working Capital Working Capital is 1.5 Therefore, Current Assets Current Liabilities As Liquidity Ratio And Current Liabilities Therefore, the Liquid Assets (bank and debtors) (2,00,000 x 1.5) Stock (5,00.000 3,00,000, i.e.. current assets - liquid assets) = 1.5 = 3,00,000 = 5,00,000 = 2.00.000 = 1.5 = 2,00,000 161 361 = 3,00,000 = * 2.00,000 12.00.000 = 15,00,000 Cost of Sales (as stock turnover ratio is 6) Sales (as G.P. ratio is 20 per cent, 20 12,00,000+ x12,00,000 Fixed Assets are 12,00,000/2 since fixed assets turnover ratio is 2 Debtors are 15,00,000/6 since debt collection period is 2 months = 6,00,000 = 2.50.000 ShareholdersNet Worth 6,00.00x1 0.80 = 7.50,000 Out of Shareholders' Net Worth Reserves and Surplus = 2.50,000 Therefore, share capital = 5,00,000 Illustration 11.24. The following extracts of financial information relate to Curious Ltd.: BALANCE SHEET as on 31st December (