Peyton Company reported these ratios at December 31, 2021 (dollar amounts in millions): $20 Current ratio...

 

Transcribed Image Text:

Peyton Company reported these ratios at December 31, 2021 (dollar amounts in millions): $20 Current ratio = $10 = 2.00 current ratio Debt ratio b. Paid long-term debt, $5. $40 $70 = 0.57 Requirement 1. Determine whether each transaction improved or hurt the company's current ratio and debt ratio. a. Purchased equipment on account, $5. (Review each transaction independently. Round calculations to two decimal places.) Current ratio= Debt ratio= GOTS debt ratio Peyton Company completed these transactions during 2022: (Click the icon to view the transactions.) Read the requiremen). K Peyton Company reported these ratios at December 31, 2021 (dollar amounts in millions): Current ratio= $20 $10 = 2.00 b. Paid long-term debt, $5. Current ratio= Current ratio= Debt ratio= current ratio $40 $70 current ratio c. Collected cash from customers in advance, $4. = 0.57 Debt ratio debt ratio Debt ratio= debt ratio Peyton Company completed these transactions during 2022 (Click the icon to view the transactions.) Read the fequiremen Peyton Company reported these ratios at December 31, 2021 (dollar amounts in millions): Current ratio= $20 $10 = 2.00 d. Accrued interest expense, $3. Current ratio= current ratio e. Made cash sales, $7.. Current ratio current ratio Debt ratio= $40 $70 = 0.57 Debt ratio. debt ratio Debt ratio= debt ratio Peyton Company completed these transactions during 2022: (Click the icon to view the transactions.) Read the requiremen. More info a. Purchased equipment on account, $5 b. Paid long-term debt, $5 c. Collected cash from customers in advance, $4 d. Accrued interest expense, $3 e. Made cash sales, $7 - X on Co (Click d the m Peyton Company reported these ratios at December 31, 2021 (dollar amounts in millions): $20 Current ratio = $10 = 2.00 current ratio Debt ratio b. Paid long-term debt, $5. $40 $70 = 0.57 Requirement 1. Determine whether each transaction improved or hurt the company's current ratio and debt ratio. a. Purchased equipment on account, $5. (Review each transaction independently. Round calculations to two decimal places.) Current ratio= Debt ratio= GOTS debt ratio Peyton Company completed these transactions during 2022: (Click the icon to view the transactions.) Read the requiremen). K Peyton Company reported these ratios at December 31, 2021 (dollar amounts in millions): Current ratio= $20 $10 = 2.00 b. Paid long-term debt, $5. Current ratio= Current ratio= Debt ratio= current ratio $40 $70 current ratio c. Collected cash from customers in advance, $4. = 0.57 Debt ratio debt ratio Debt ratio= debt ratio Peyton Company completed these transactions during 2022 (Click the icon to view the transactions.) Read the fequiremen Peyton Company reported these ratios at December 31, 2021 (dollar amounts in millions): Current ratio= $20 $10 = 2.00 d. Accrued interest expense, $3. Current ratio= current ratio e. Made cash sales, $7.. Current ratio current ratio Debt ratio= $40 $70 = 0.57 Debt ratio. debt ratio Debt ratio= debt ratio Peyton Company completed these transactions during 2022: (Click the icon to view the transactions.) Read the requiremen. More info a. Purchased equipment on account, $5 b. Paid long-term debt, $5 c. Collected cash from customers in advance, $4 d. Accrued interest expense, $3 e. Made cash sales, $7 - X on Co (Click d the m

Answer rating: 100% (QA)

Parta Purchase Equipment on account 5 Current Asset CA20 Current Liabilities CL10 Total Debt 40 Tota... View the full answer