How much must be the current assets be?

Question

Currrent ratio is 1.75: 1 with working capital amounting to 15,000.

Answer 1

Current ratio is Current Assets/Current Liabilities = 1.75, i.e. CA = 1.75 times of CL

Working capital = CA - CL = 15,000
1.75CL - CL = 15,000
0.75CL = 15,000
CL = 20,000
So CA must be 35,000

To double-check,
35,000/20,000 = 1.75

35,000 - 20,000 = 15,000