If the current ratio is 2

Step 1 current ratio means current assets divided by current liabilities. Step 2 working capital is current assets minus current liabilities which equals 60000. Step 3 let current liabilities be x then current assets are 2x. Step 4 substituting gives 2x minus x equals 60000 so x equals 60000. Step 5 current assets are 2 times 60000 which equals 120000. Therefore the correct option is C. This example shows how ratio analysis helps in understanding financial strength and liquidity of a business.