In its most recent annual report, Laurentian Beverages reported current assets of $54,000 and a current ratio

Question:

In its most recent annual report, Laurentian Beverages reported current assets of $54,000 and a current ratio of 1.80. Assume that the following transactions were completed:

a. Purchased merchandise for $6,000 on account

b. Purchased a delivery truck for $10,000, paying $1,000 cash and signing a two-year promissory note for the balance

Required:

Compute the updated current ratio, rounded to two decimal places, after each transaction.

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Related Book For answer-question

Fundamentals of Financial Accounting

ISBN: 978-1259269868

5th Canadian edition

Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh

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Question Posted: Jan 21, 2020 01:41 PM

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In its most recent annual report, Laurentian Beverages reported current assets of $54,000 and a current ratio

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Current Assets CA Current Liabilities CL Current ...View the full answer

Fundamentals of Financial Accounting

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