Question: Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately. (Round all ratios to two decimal places) a.
Compute the three ratios after evaluating the effect of each transaction that follows. Consider each transaction separately. (Round all ratios to two decimal places)
a. borrowed $130.000 on a long-term note payable.
b. on january 1, issued 40,000 shares of common stock, receiving cash of $368,000.
c. paid short-term notes payable, $24,000.
d purchased merchandise of $43,000 on account, debiting inventory.
e. received cash on account, $21,000.
additional info: data table
cash....23,000 accounts receivable, net...88,000 inventories...148,000 prepaid expenses...6,000 total assets...676,000 short-term investments..34,000 short-term notes payable...49,000 accounts payable...108,000 accrued liabilities...36,000 long-term notes payable...164,000 other long-term liabilities...31,000 net income...95,000 number of common shares outstanding...44,000
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