1. What was the company's working capital on June 30? 2. What was the company's acid-test ratio on June 30? (Round your answer to 2 decimal places) 3. The company paid an account payable of $48,000 immediately after June 30. a. What effect did this transaction have on working capital? b. What effect did this transaction have on the current ratio? (Round your intermediate calculations to 1 decimal place.)

1. What was the company's working capital on June 30? 2. What was the company's acid-test ratio on June 30? (Round your answer to 2 decimal places) 3. The company paid an account payable of $48,000 immediately after June 30. a. What effect did this transaction have on working capital? b. What effect did this transaction have on the current ratio? (Round your intermediate calculations to 1 decimal place.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Provide anwers for the blanks in attached table. Indicate whether the following independent transactions increase (+), decrease (-), or do not affect (NE) the current ratio, the amount of working capital, and cash from operations. Also indicate the amounts of any effects. The company presently has a current ratio of 2 to 1 along with current liabilities of $160,000.
please see attached file
Subject: accounting
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