The Current Ratio
The current ratio is a financial ratio that measures a company's ability to cover its short-term liabilities with its short-term assets. It is calculated by dividing the total current assets by the total current liabilities. A higher current ratio indicates a stronger liquidity position.

Given Information
- Current liabilities: Rs. 3,50,000
- Current ratio: 3
- Liquid ratio: 1.75

Calculating Current Assets
To find the amount of current assets, we can use the current ratio formula:

Current Ratio = Current Assets / Current Liabilities

Rearranging the formula, we have:

Current Assets = Current Ratio * Current Liabilities

Substituting the given values:

Current Assets = 3 * 3,50,000 = Rs. 10,50,000

Therefore, the amount of current assets is Rs. 10,50,000.

Calculating Liquid Assets
To calculate the liquid assets, we can use the liquid ratio formula:

Liquid Ratio = Liquid Assets / Current Liabilities

Given that the liquid ratio is 1.75, we can rearrange the formula as:

Liquid Assets = Liquid Ratio * Current Liabilities

Substituting the values:

Liquid Assets = 1.75 * 3,50,000 = Rs. 6,12,500

Therefore, the amount of liquid assets is Rs. 6,12,500.

Calculating Inventory
The difference between current assets and liquid assets represents the inventory.

Inventory = Current Assets - Liquid Assets

Substituting the values:

Inventory = 10,50,000 - 6,12,500 = Rs. 4,37,500

Therefore, the amount of inventory is Rs. 4,37,500.

Summary
- Current Assets: Rs. 10,50,000
- Liquid Assets: Rs. 6,12,500
- Inventory: Rs. 4,37,500

The current assets amount to Rs. 10,50,000, which is calculated using the current ratio. The liquid assets amount to Rs. 6,12,500, calculated using the liquid ratio. The inventory is calculated by subtracting the liquid assets from the current assets, resulting in Rs. 4,37,500. These figures provide insights into the company's liquidity position and the value of its inventory.