Assume current assets totaled $120,000 and the current ratio was 1.5 before the following independent transactions: (1)
Question:
Assume current assets totaled $120,000 and the current ratio was 1.5 before the following independent transactions:
(1) Purchased merchandise for $40,000 on short-term credit.
(2) Purchased a delivery truck for $25,000. Paid $3,000 cash and signed a two-year interest-bearing note for the balance.
Required:
Compute the current ratio after each independent transaction.
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Related Book For
Financial Accounting
ISBN: 9781264229734
11th Edition
Authors: Robert Libby, Patricia Libby, Frank Hodge
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