On June 30, 2014, Freeman Companys total current assets were $800,000 and its total current liabilities were
Question:
Required
a. Compute Freeman’s working capital before and after issuing the note.
b. Compute Freeman’s current ratio before and after issuing the note. Round ratios to two decimal points.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (12 reviews)
a Working capital before the transaction Current assets Current liabilities 800...View the full answer
Answered By
Mehwish Aziz
What I have learnt in my 8 years experience of tutoring is that you really need to have a friendly relationship with your students so they can come to you with their queries without any hesitation. I am quite hardworking and I have strong work ethics. Since I had never been one of those who always top in the class and always get A* no matter what, I can understand the fear of failure and can relate with my students at so many levels. I had always been one of those who had to work really hard to get decent grades. I am forever grateful to some of the amazing teachers that I have had who made learning one, and owing to whom I was able to get some extraordinary grades and get into one of the most prestigious universities of the country. Inspired by those same teachers, I am to be like one of them - who never gives up on her students and always believe in them!
5.00+
3+ Reviews
10+ Question Solved
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
Question Posted:
Students also viewed these Managerial Accounting questions
-
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....
-
All else equal, a large sell off in the equity markets (decline in the S&P 500 and the Dow Jones Industrial Average) would be the most likely result from the reporting of a much higher than expected...
-
Draw all structural and geometric isomers of butene and name them.
-
How are cash inflows from dividends and interest and cash outflows for dividends and interest classified in BA's cash flow statements? Is this classification the same as or different from cash flow...
-
Explain the role of parameters and return values in exchanging messages.
-
Louisiana Luggage Components manufactures handles for suitcases and other luggage. Attaching each handle to the luggage requires, depending on the size of the luggage piece, between two and six...
-
14 Complete this question by entering your answers in the tabs below. 00:30:48 Required 1 Required 2 Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased...
-
Ashley's Auto Top Carriers currently maintains plants in Atlanta and Tulsa that supply major distribution centers in Los Angeles and New York. Because of an expanding demand, Ashley has decided to...
-
Elsea Corporation wrote off an $800 uncollectible account receivable against the $24,000 balance in its allowance account. Required Explain the effect of the write-off on Elseas current ratio.
-
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....
-
The distributor of the Wapakoneta Daily News, a regional newspaper serving western Ohio, is considering three types of dispensing machines or racks. Management wants to know if the different machines...
-
Which of the following statements is not consistent with Kants concept of the categorical imperative? (a) Act only according to that maxim by which you can at the same time will that it should become...
-
The justice decision-making approach in the business world treats all persons in the same category in the ______________ manner.
-
Models that are useful for the evaluation of ethical issues in the business world include: (a) The American Accounting Association Ethical Decision-Making Model. (b) The Laura Nash Model. (c) A and...
-
Eva decides she has a duty to tell the truth at all times. What ethical system will Eva be using to make her decision? (a) Consequentialism. (b) Deontology. (c) Virtue ethics. (d) Hedonism.
-
The leading form of consequentialism is ____________.
-
Surveillance is a theft investigation technique that relies on the examination of documents. (True/False)
-
Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment...
-
The following quote is taken from Wayne \(H\). Wagner, "The Taxonomy of Trading Strategies," in Katrina F. Sherrerd (ed.), Trading Strategies and Execution Costs (Charlottesville, VA: The Institute...
-
Seattle Bank's start-up division establishes new branch banks. Each branch opens with three tellers. Total teller cost per branch is $96,000 per year. The three tellers combined can process up to...
-
At the various activity levels shown, Harper Company incurred the following costs: Required Identify each of these costs as fixed, variable, or mixed. 20 40 60 80 100 Unlts Sold Rental cost per unit...
-
Rita Jekyll operates a sales booth in computer software trade shows, selling an accounting software package, Abacus. She purchases the package from a software company for $210 each. Booth space at...
-
It is March, and the annual NCAA Basketball Tournament is down to the final 4 teams. Randy Kitchell is a t-shirt vendor who plans to order t-shirts with the names of the final 4 teams from a...
-
L = {w| L2 = {w| Two languages L1 and L2 are defined by symbols = {0, 1}, written as w contains 00 as a sub-string and the length of w is even number} w begins with 0 and ends with 1} (i) Write two...
-
a. Write a story problem for the expression 6 x b. Find the value of the expression. Show or explain your work. da f
Study smarter with the SolutionInn App