Jaguar Plastics Company has been operating for three years. At December 31 of last year, the...
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Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash $20,000 Accounts payable $20,000 Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment 3,400 Accrued liabilities payable 4,800 Notes payable (current) 32,000 Notes payable (noncurrent) 1,700 Long-term lease liabilities 46,000 Common stock 4,000 6,300 49,000 63,000 10,400 Factory building Operating lease right-of-use assets Intangible assets 101,000 Additional paid-in capital 130,000 Retained earnings 4,500 93,600 97,100 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $7.900 cash. b. Lent $6,500 to a supplier, who signed a two-year note. c. Leased equipment that cost $22,000; paid $5,300 cash and signed a five-year right-of-use lease for the balance. d. Hired a new president at the end of the year. The contract was for $82,000 per year plus options to purchase company stock at a set price based on company performance. The new president begins her position on January 1 of next year. e. Issued an additional 1,400 shares of $0.50 par value common stock for $16,000 cash. f. Borrowed $17,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $3,000 cash. h. Built an addition to the factory for $23,000; paid $7,700 in cash and signed a three-year note for the balance. 1. Returned defective equipment to the manufacturer, receiving a cash refund of $3,600. Required: 6. Compute the current ratio for the current year. Note: Round your answer to 2 decimal places. Current ratio Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following: Cash $20,000 Accounts payable $20,000 Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) Equipment 3,400 Accrued liabilities payable 4,800 Notes payable (current) 32,000 Notes payable (noncurrent) 1,700 Long-term lease liabilities 46,000 Common stock 4,000 6,300 49,000 63,000 10,400 Factory building Operating lease right-of-use assets Intangible assets 101,000 Additional paid-in capital 130,000 Retained earnings 4,500 93,600 97,100 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $7.900 cash. b. Lent $6,500 to a supplier, who signed a two-year note. c. Leased equipment that cost $22,000; paid $5,300 cash and signed a five-year right-of-use lease for the balance. d. Hired a new president at the end of the year. The contract was for $82,000 per year plus options to purchase company stock at a set price based on company performance. The new president begins her position on January 1 of next year. e. Issued an additional 1,400 shares of $0.50 par value common stock for $16,000 cash. f. Borrowed $17,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $3,000 cash. h. Built an addition to the factory for $23,000; paid $7,700 in cash and signed a three-year note for the balance. 1. Returned defective equipment to the manufacturer, receiving a cash refund of $3,600. Required: 6. Compute the current ratio for the current year. Note: Round your answer to 2 decimal places. Current ratio
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Related Book For
Financial Accounting
ISBN: 978-0078025556
8th edition
Authors: Robert Libby, Patricia Libby, Daniel Short
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