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: Accounts payable Cash $24,000 $22,000 Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) 2,400 Equipment 49,000 3,000 Accrued liabilities payable 3,300 Notes payable (current) 29,000 Notes payable (noncurrent) Long-term lease liabilities. Common stock 2,100 6,600 40,000 65,000 10,300 Factory building 97,000 Operating lease right-of-use assets 130,000 Additional paid-in capital Retained earnings 92,700 103,400 Intangible assets 4,400 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $7,400 cash. b. Lent $6,400 to a supplier, who signed a two-year note. c. Leased equipment that cost $26,000; paid $5,000 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 $83,000 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 2,000 shares of $0.50 par value common stock for $12,000 cash. f. Borrowed $14,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $1,300 cash. h. Built an addition to the factory for $29,000; paid $8,100 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $3,900. 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: Accounts payable Cash $24,000 $22,000 Investments (short-term) Accounts receivable Inventory Notes receivable (long-term) 2,400 Equipment 49,000 3,000 Accrued liabilities payable 3,300 Notes payable (current) 29,000 Notes payable (noncurrent) Long-term lease liabilities. Common stock 2,100 6,600 40,000 65,000 10,300 Factory building 97,000 Operating lease right-of-use assets 130,000 Additional paid-in capital Retained earnings 92,700 103,400 Intangible assets 4,400 During the current year, the company had the following summarized activities: a. Purchased short-term investments for $7,400 cash. b. Lent $6,400 to a supplier, who signed a two-year note. c. Leased equipment that cost $26,000; paid $5,000 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 $83,000 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 2,000 shares of $0.50 par value common stock for $12,000 cash. f. Borrowed $14,000 cash from a local bank, payable in three months. g. Purchased a patent (an intangible asset) for $1,300 cash. h. Built an addition to the factory for $29,000; paid $8,100 in cash and signed a three-year note for the balance. i. Returned defective equipment to the manufacturer, receiving a cash refund of $3,900. Required: 6. Compute the current ratio for the current year. Note: Round your answer to 2 decimal places. Current ratio

Answer rating: 100% (QA)

Answer To compute the current ratio we need to use the formula textCurren... View the full answer