On June 30, 2008, Thorpe Companys total current assets were $250,000 and its total current liabilities were

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On June 30, 2008, Thorpe Company’s total current assets were $250,000 and its total current liabilities were $125,000. On July 1, 2008, Thorpe issued a short-term note to a bank for $25,000 cash.

Required

a. Compute Thorpe’s working capital before and after issuing the note.

b. Compute Thorpe’s current ratio before and after issuing the note.

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Survey of Accounting

ISBN: 978-0073379555

2nd edition

Authors: Edmonds, old, Mcnair, Tsay

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Question Posted: Jan 03, 2012 04:15 AM

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On June 30, 2008, Thorpe Companys total current assets were $250,000 and its total current liabilities were

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a Working capital before the transaction Current assets Current liabilities 250000 ...View the full answer

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