Question

API Ltd. has a quick ratio of 0.80 and working capital in the amount of $ 1,240,000. For each of the following transactions, determine whether the quick ratio and working capital will increase, decrease, or remain the same.
a. Paid trade payables in the amount of $ 50,000.
b. Recorded accrued salaries in the amount of $ 100,000.
c. Borrowed $ 250,000 from the bank, to be repaid in 90 days.
d. Purchased $ 20,000 of new inventory on credit.


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  • CreatedAugust 04, 2015
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