Question

The Sports Authority, Inc., is a private full-line sporting goods retailer. Assume one of the Sports
Authority stores reported current assets of $88,000 and its current ratio was 1.75, and then completed the following transactions:
(1) Paid $6,000 on accounts payable,
(2) Purchased a delivery truck for $10,000 cash,
(3) Wrote off a bad account receivable for $2,000, and
(4) Paid previously declared dividends in the amount of $25,000.

Required:
Compute the updated current ratio, rounded to two decimal places, after each transaction.



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  • CreatedFebruary 27, 2015
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