CALCULATION SECTION

Instructions: In this section, please show all calculations. Partial credit will be given wherever possible, when your calculations are shown and they are completed correctly. 37.38. Assume that Pet Supplies Galore has the following values on its most recent Balance Sheet: Account Cash Accounts Receivable Inventory Total Current Assets Value $75,200 132,600 335,000 542,800 Current Liabilities $445,500 O Using the information in the table shown above, calculate the Current Ratio for Pet Supplies Galore: a. Now, assume that Pet Supplies Galore discovers that $50,000 of the $132,600 Account Receivable listed on its most recent Balance Sheet are uncollectible. The Senior Accountant at Pet Supplies Galores corporate office in Seattle, Washington removes these $50,000 of uncollectible accounts from the firm's Accounts Receivable balance and expenses them on the Income Statement as a Bad Debt Expense. Following this adjustment, what is Pet Supplies Galore's updated "Current Ratio?