Assume current assets totaled $59,000 and the current ratio was 1.2 before the following independent transactions: (1) Purchased merchandise for $5,000 on short-term credit. (2) Purchased a delivery truck for $15,000. Paid $6,000 cash and signed a two-year interest-bearing note for the balance. Required: Compute the current ratio after each independent transaction. (Round your answers to 2 decimal places.) Transaction (1) (2) Current Ratio 1.18 1.07

Assume current assets totaled $59,000 and the current ratio was 1.2 before the following independent transactions: (1) Purchased merchandise for $5,000 on short-term credit. (2) Purchased a delivery truck for $15,000. Paid $6,000 cash and signed a two-year interest-bearing note for the balance. Required: Compute the current ratio after each independent transaction. (Round your answers to 2 decimal places.) Transaction (1) (2) Current Ratio 1.18 1.07

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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