Question: Current assets for JC Inc. totalled $ 54,000, and the current ratio was 1.8. Assume that the following transactions were completed: (1) Purchased merchandise for

Current assets for JC Inc. totalled $ 54,000, and the current ratio was 1.8. Assume that the following transactions were completed:
(1) Purchased merchandise for $ 6,000 on short- term credit
(2) Purchased a delivery truck for $ 20,000—paid $ 4,000 cash and signed a two-year interest- bearing note for the balance.
Required:
Compute the current ratio after each transaction.

Step by Step Solution

★★★★★

3.31 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Current ratio CA CL therefore CL ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

480-B-A-F-S (4477).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Benzene, C 6 H 6 , belongs to the D 6h group. The reducible representation for the vibrational modes is a. How many vibrational modes does benzene have? b. How many of these modes are infrared active...

Assume that the following transactions of Sleuth Book Store occurred during 2014 and 2015: 2014 Jan. 9 Purchased store fixtures at a cost of $50,000, signing an 8%, six-month note for that amount....

Assume that the following transactions occurred between Brighton Medical Supply and a Best drug store during April of the current year. Apr 6 Best purchased $5,800 of merchandise from Brighton...

Assume that the following transactions occurred between Springfield Medical Supply and a Brookston drug store during September of the current year. Sep 6 Brookston purchased $6,300 of merchandise...

Current assets for JC Inc. totalled $58,322, and the current ratio was 2.42. Assume that the following transactions were completed: (1) Purchased merchandise for $4,400 on short-term credit. (2)...

E12-7 Analyzing the Impact of Selected Transactions on the Current Ratio LO12-8 Current assets for JC Inc. totalled $35,550, and the current ratio was 1.58. Assume that the following transactions...

E12-7 Analyzing the Impact of Selected Transactions on the Current Ratio LO12-8 Current assets for JC Inc. totalled $95,996, and the current ratio was 2.33. Assume that the following transactions...

E12-7 Analyzing the Impact of Selected Transactions on the Current Ratio L012-8 Current assets for JC Inc. totalled $34,440, and the current ratio was 1.54. Assume that the following transactions...

E12-7 Analyzing the Impact of Selected Transactions on the Current Ratio LO12-8 Current assets for JC Inc. totalled $95,996, and the current ratio was 2.33. Assume that the following transactions...

E12-7 Analyzing the Impact of Selected Transactions on the Current Ratio L012-8 Current assets for JC Inc. totalled $46,883, and the current ratio was 1.73. Assume that the following transactions...

E12-7 Analyzing the Impact of Selected Transactions on the Current Ratio LO12-8 Current assets for JC Inc. totalled $35,550, and the current ratio was 1.58. Assume that the following transactions...

Read the case study Harley-Davidson: Style and Strategy With a Global Reach and answer the following question: If you were CEO of Harley-Davidson, how would you compare the advantages and...

Why is it so important that organizations keep trying to encourage productive mentoring relationships between senior- and junior-level employees? What are some of the challenges associated with...

differentiate y = suqare root of x / 1 + x

The experimental heat capacity of N2(g) can be fit to the empirical formula C, (T) = 2.283 + (6.291x10-*K-1)T (5.0x10-1K-2)T? R C (T) over the temperature range 300 K

(a) The class interfaces of a linked list node and a linked list are provided below. Class Interface of Linked List Node class listnode { private: int value; listnode * next; public: listnode ();...

When we say " Kant believed that from this one categorical imperative, this universal command, all commands of duty could be derived." What is " that one categorical imperative"?

Prove using the definition of the limit that lim, 4 x - V +5 1. You need to find & in terms of e so that if a 4

1.Find the Fourier transforms of the discrete time signals given below using the Fourier transform equation. (a) x[n] = u[n 3] - uln - 7] %3D (b) x[n] = 2" sin (n) ul-n] %3D

What is the best utilization of each meeting room?

After investigating the different forms of business organization, Natalie Koebel decides to operate her business as a corporation, Cookie Creations Inc., and she begins the process of getting her...

The financial statements of Tootsie Roll Industries, Inc., appear in Appendix A at the end of this book. Instructions Answer the following questions using the financial statements and the notes to...

The financial statements of The Hershey Company appear in Appendix B, following the financial statements for Tootsie Roll in Appendix A. Assume Hersheys average number of shares outstanding was...

Problem 3] The probability mass function for the geometric random variable is given by P(x) = 17(1 Fly1. I = 1, 2, Prove that EL?) :51

I got this question wrong, please explain the right answer and why. Refer to the picture, thank you. Question 6 O / 1 point Given the following Sample Space 5 and Events A, B, C, and D. s =...

Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's net present value (NPV). You don't know the...