In its most recent annual report, Appalachian Beverages reported current assets of $58,900 and a current...

Transcribed Image Text:

In its most recent annual report, Appalachian Beverages reported current assets of $58,900 and a current ratio of 1.90. Assume the following transactions were completed: (1) purchased merchandise for $6,100 on account and (2) purchased a delivery truck for $10,000, paying $2,000 cash and signing a two-year promissory note for the balance. Required: Compute the updated current ratio after each transaction, by showing the cumulative effects of the transactions in the following table. Note: Round your answers to 2 decimal places. Transaction (1) Transaction (2) Current Ratio In its most recent annual report, Appalachian Beverages reported current assets of $58,900 and a current ratio of 1.90. Assume the following transactions were completed: (1) purchased merchandise for $6,100 on account and (2) purchased a delivery truck for $10,000, paying $2,000 cash and signing a two-year promissory note for the balance. Required: Compute the updated current ratio after each transaction, by showing the cumulative effects of the transactions in the following table. Note: Round your answers to 2 decimal places. Transaction (1) Transaction (2) Current Ratio

Answer rating: 100% (QA)

Calculating the Updated Current Ratio Transaction 1 Purchased merchandise for 6100 on account Effect ... View the full answer