Assume current assets totaled $54,000 and the current ratio was 1.2 before the following independent transactions: 1. Purchased merchandise for $10,000 on short-term credit. 2. Purchased a delivery truck for $23,000. Paid $5,000 cash and signed a two-year interest-bearing note for the balance. Required: Compute the current ratio after each independent transaction. Note: Round your answers to 2 decimal places. Transaction (2) Current Ratio

Assume current assets totaled $54,000 and the current ratio was 1.2 before the following independent transactions: 1. Purchased merchandise for $10,000 on short-term credit. 2. Purchased a delivery truck for $23,000. Paid $5,000 cash and signed a two-year interest-bearing note for the balance. Required: Compute the current ratio after each independent transaction. Note: Round your answers to 2 decimal places. Transaction (2) Current Ratio

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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