Question

Keener Incorporated had the following transactions occur involving current assets and current liabilities during February 2014.

Additional information:
1. As of February 1, 2014, current assets were $110,000, and current liabilities were $50,000.
2. As of February 1, 2014, current assets included $15,000 of inventory and $2,000 of prepaid expenses.

Instructions
(a) Compute the current ratio as of the beginning of the month and after each transaction.
(b) Compute the acid-test ratio as of the beginning of the month and after each transaction.



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  • CreatedJanuary 30, 2014
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