Refer to the Uptown Sporting Goods Company data in Short Exercise 3-17.
In Short Exercise 3-17. Uptown Sporting Goods reported the following data at July 31, 2014, with amounts adapted in thousands:

At July 31, 2014, Uptown Sporting Goods Company’s current ratio was 1.72 and its debt ratio was 0.46. Compute Uptown’s (a) net working capital, (b) current ratio, and (c) debt ratio after each of the following transactions (all amounts in thousands, as in the Uptown financial statements):
1. Uptown earned revenue of $10,000 on account.
2. Uptown paid of accounts payable of $10,000.
When calculating the revised ratios, treat each of the above scenarios independently. Round ratios to two decimalplaces.

  • CreatedJuly 25, 2014
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