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Assume current assets totaled $60,000 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 $2,000 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 (1) (2) Current Ratio

Assume current assets totaled $60,000 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 $2,000 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 (1) (2) 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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Assume current assets totaled $60,000 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 $2,000 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 (1) (2) Current Ratio
Transcribed Image Text:Assume current assets totaled $60,000 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 $2,000 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 (1) (2) Current Ratio
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