Question

Wild Inc. began the month of May with $200,000 of current assets, a 2 to 1 current ratio, and a 1 to 1 acid-test (quick) ratio. During the month, the following transactions were completed (assume a perpetual inventory system):


Required
1. State the effect of each of the above transactions on the current ratio and the acid-test ratio. Give the effect in terms of increase, decrease, or no change. Use check marks to indicate your answers.
2. For the end of May, calculate the
i. Current ratio
ii. Acid-test ratio
iii. Workingcapital


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  • CreatedJanuary 08, 2015
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