Financial Ratios

Step 1: Calculate current liabilities.
Current liabilities = Total Assets - Current Assets = ₹22,000 - ₹12,000 = ₹10,000

Step 2: Calculate Current Ratio.
Now, we can calculate the current ratio: Part (B) - Net Profit Ratio:
Net Profit Ratio is calculated using the formula:

Step 1: Calculate Net Profit.
Net profit is calculated as: Substituting the values:

Step 2: Calculate Net Profit Ratio.
Now, we calculate the net profit ratio:

Final Answer: \text{(A) Current Ratio = 1.2}
\text{(B) Net Profit Ratio = 15.79%}