On October 31, 2012, Henderson Companys total current assets were $65,000 and its total current liabilities were
Question:
On October 31, 2012, Henderson Company’s total current assets were $65,000 and its total current liabilities were $20,000. On November 1, 2012, Henderson bought manufacturing equipment for $10,000 cash.
Required
a. Compute Henderson’s working capital before and after the equipment purchase.
b. Compute Henderson’s current ratio before and after the equipment purchase.
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a Working capital before the equipment purchase 65000 ...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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