Question: On June 30 2014 Freeman Company s total current assets were

On June 30, 2014, Freeman Company’s total current assets were $800,000 and its total current liabilities were $400,000. On July 1, 2014, Freeman issued a short-term note to a bank for $80,000 cash.

Required
a. Compute Freeman’s working capital before and after issuing the note.
b. Compute Freeman’s current ratio before and after issuing the note. Round ratios to two decimal points.


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  • CreatedFebruary 07, 2014
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