Question: On June 30, 2014, Freeman Companys total current assets were $800,000 and its total current liabilities were $400,000. On July 1, 2014, Freeman issued a

On June 30, 2014, Freeman Company’s total current assets were $800,000 and its total current liabilities were $400,000. On July 1, 2014, Freeman issued a long-term note to a bank for $80,000 cash.

Required
Round computations to one decimal point.
a. Compute Freeman’s working capital before and after issuing the note.
b. Compute Freeman’s current ratio before and after issuing the note.

Step by Step Solution

★★★★★

3.49 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

a Working capital before the transaction 800000 ... 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)

276-B-M-A-F-S-A (1492).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Husky Corporation PART 1 (90 pts) You are auditing Accounts Receivable of HUSKY Corp. as of December 31, 2013 Using Microsoft Excel. Below are links to videos and other information explaining various...

On October 31, 2015, Kato Companys total current assets were $80,000 and its total current liabilities were $20,000. On November 1, 2015, Kato purchased marketable securities for $10,000 cash....

On October 31, 2015, Kato Companys total current assets were $80,000 and its total current liabilities were $20,000. On November 1, 2015, Kato bought manufacturing equipment for $10,000 cash....

On October 31, 2019, Corona Company's total current assets were $160,000 and its total current liabilities were $40,000. On November 1, 2019, Corona purchased marketable securities for $20,000 cash....

On June 30, 2014, Freeman Company's total current assets were exist501, 500 and its total current liabilities were exist272,000. On July 1, 2014, Freeman issued a short-term note to a bank for...

On June 30, 2014, Freeman Companys total current assets were $800,000 and its total current liabilities were $400,000. On July 1, 2014, Freeman issued a long-term note to a bank for $80,000 cash. a....

10 Accounts receivable turnover, inventory turnover, and net margin LO 9-2, 9-4 Selected data from Komar Company follow. Balance Sheet As of December 31 2014 2013 Accounts receivable $ 401,000 $...

On June 30, 2014, Freeman Companys total current assets were $800,000 and its total current liabilities were $400,000. On July 1, 2014, Freeman issued a long-term note to a bank for $80,000 cash....

On June 30, 2014, Freeman Companys total current assets were $800,000 and its total current liabilities were $400,000. On July 1, 2014, Freeman issued a short-term note to a bank for $80,000 cash....

On June 30, 2014, Freeman Companys total current assets were $800,000 and its total current liabilities were $400,000. On July 1, 2014, Freeman issued a short-term note to a bank for $80,000 cash. a....

On June 30, 2014, Freeman Companys total current assets were $499,000 and its total current liabilities were $278,500. On July 1, 2014, Freeman issued a short-term note to a bank for $39,000 cash....

What is the SDLC? What type of controls does the use of the SDLC include with respect to program development and changes?

Write Lewis symbols for the following: a. P b. P3 c. Ga d. Ga3+

A company reports the following in its balance sheet: Total assets of $800,000 and total stockholders' equity of $700,000 Which of the following is true? Group of answer choices Total revenues equal...

Directions. In 3-4 sentences, write in the box the insight/s you have gained about the role of educational institution in the lives of the people in society.

RMC, Inc., is a small firm that produces a variety of chemical-based products. In a particular production process, three raw materials are used to produce two products: a fuel additive and a solvent...

Give your analysis why the total cost of supply inventory greatly affects the company's financial performance?

A bike is traveling to the left with a speed of 27\,\dfrac{\text m}{\text s}27sm27, space, start fraction, m, divided by, s, end fraction when the rider slams on the brakes. The bike skids for...

On your answer sheet, write your personal experiences depicting right or wrong decisions you made during this pandemic. Cite the reasons why you did such acts, and how you resolved the issues. 1. 2.

What "little things" annoyed you today? What emotions did you experience today?

Franklin Training Services (FTS) provides instruction on the use of computer software for the Employees of its corporate clients. It offers courses in the clients offices on the clients equipment....

Kenton and Denton Universities offer executive training courses to corporate clients. Kenton pays its instructors $5,000 per course taught. Denton pays its instructors $250 per student enrolled in...

Fanning Corporation incurs the following annual fixed costs: Item Cost Depreciation ...............$ 80,000 Officers' salaries............190,000 Long-term lease..............42,000 Property...

As companies evolve, certain factors can drive sudden growth. This may lead to a period of nonconstant, or variable, growth. This would cause the expected growth rate to increase or decrease, thereby...

eBook Problem Walk-Through New-Project Analysis The president of your company, MorChuck Enterprises, has asked you to evaluate the proposed acquisition of a new chromatograph for the firm's R&D...

just the last part needs to be calculated! here is the information that is from previous ABU Upally S LUIer sildle price 15 19.UU all IL 15 OAPOLIUUIU puyu1.00 UIVUUN PU year. After that, the firm's...