Question: Robinson Tools has 50 000 of quick assets 135 000 of total

Robinson Tools has $50,000 of quick assets, $135,000 of total current assets, and $100,000 of total current liabilities prior to the following transactions.
1. Made sales on account of $10,000
2. Paid cash for accounts due to suppliers, $15,000
3. Received cash for accounts receivable of $15,000
4. Prepaid expenses of $7,500 with cash
5. Purchased inventory of $20,000 on account
6. Paid a $5,000 cash dividend
7. Repaid short-term loans of $10,000 with cash
8. Purchased short-term investments of $15,000 with cash
9. Borrowed $25,000 from the bank by signing a 90-day note
10. Sold inventory of $30,000 for cash
Required
Indicate whether each transaction would increase, decrease, or have no effect on Robinson's current and quick ratios. Treat each transaction independently.



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  • CreatedJuly 16, 2015
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