A company has current assets of $558,000 and current liabilities of $221,000. The board of directors declares a cash dividend of $174,000. a. What is the current ratio after the declaration but before payment? b. What is the current ratio after the payment of the dividend?

A company has current assets of $558,000 and current liabilities of $221,000. The board of directors declares a cash dividend of $174,000. a. What is the current ratio after the declaration but before payment? b. What is the current ratio after the payment of the dividend?

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter7: Financial Activities

Section: Chapter Questions

Problem 2CIC

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Question

Give me correct answer the following requirements on these accounting question

A company has current assets of $558,000 and current liabilities
of $221,000. The board of directors declares a cash dividend of
$174,000.
a. What is the current ratio after the declaration but before
payment?
b. What is the current ratio after the payment of the dividend?

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