Using the Balance Sheet, the current ratio is calculated by dividing current assets by current liabilities:
Current assets = stock + debtors + banks + cash current liabilities = drawings + creditors + accruals
current assets = 2000 + 1000 + 100 + 600 =3700current liabilities = 2000 + 200 + 300 = 25003700 ÷ 2500 = 1.4