Question

Cecilia Crawford Consulting Company reported these ratios at December 31, 2014 (dollar amounts in millions):
Current ratio = $60/$50 = 1.20
Debt ratio = $70/$90 = 0.78
Cecilia Crawford Consulting completed these transactions during 2015:
a. Purchased equipment on account, $10
b. Paid long-term debt, $6
c. Collected cash from customers in advance, $7
d. Accrued interest expense, $4
e. Made cash sales, $8
Determine whether each transaction improved or hurt the business’s current ratio and debt ratio.



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  • CreatedJuly 25, 2014
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