On June 30, 2011, Weslaco Companys total current assets were $500,000 and its total current liabilities were
Question:
On June 30, 2011, Weslaco Company’s total current assets were $500,000 and its total current liabilities were $275,000. On July 1, 2011, Weslaco issued a short-term note to a bank for $40,000 cash.
Required
a. Compute Weslaco’s working capital before and after issuing the note.
b. Compute Weslaco’s current ratio before and after issuing the note.
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a Working capital before the transaction Current assets Current liabilities 500...View the full answer
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Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
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