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24 On June 30, Year 3, Munoz Company's total current assets were $498,000 and its total current liabilities were $279,000. On July 1, Year 3, Munoz issued a short-term note to a bank for $38,000 cash. Required a. Compute Munoz's working capital before and after issuing the note. b. Compute Munoz's current ratio before and after issuing the note. (Round your answers to 2 decimal places.) Before the transaction After the transaction a. Working capital b. Current ratio

24 On June 30, Year 3, Munoz Company's total current assets were $498,000 and its total current liabilities were $279,000. On July 1, Year 3, Munoz issued a short-term note to a bank for $38,000 cash. Required a. Compute Munoz's working capital before and after issuing the note. b. Compute Munoz's current ratio before and after issuing the note. (Round your answers to 2 decimal places.) Before the transaction After the transaction a. Working capital b. Current ratio

FINANCIAL ACCOUNTING
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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24 On June 30, Year 3, Munoz Company's total current assets were $498,000 and its total current liabilities were $279,000. On July 1, Year 3, Munoz issued a short-term note to a bank for $38,000 cash. Required a. Compute Munoz's working capital before and after issuing the note. b. Compute Munoz's current ratio before and after issuing the note. (Round your answers to 2 decimal places.) Before the transaction After the transaction a. Working capital b. Current ratio
Transcribed Image Text:24 On June 30, Year 3, Munoz Company's total current assets were $498,000 and its total current liabilities were $279,000. On July 1, Year 3, Munoz issued a short-term note to a bank for $38,000 cash. Required a. Compute Munoz's working capital before and after issuing the note. b. Compute Munoz's current ratio before and after issuing the note. (Round your answers to 2 decimal places.) Before the transaction After the transaction a. Working capital b. Current ratio
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