Assume current assets totaled $62,000 and the current ratio was 1.2 before the following independent transactions: 1. Purchased merchandise for $7,000 on short-term credit. 2. Purchased a delivery truck for $18,000. Paid $4,000 cash and signed a two-year interest-bearing note for the balance.
Assume current assets totaled $62,000 and the current ratio was 1.2 before the following independent transactions: 1. Purchased merchandise for $7,000 on short-term credit. 2. Purchased a delivery truck for $18,000. Paid $4,000 cash and signed a two-year interest-bearing note for the balance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hh1.
Assume current assets totaled $62,000 and the
1. Purchased merchandise for $7,000 on short-term credit.
2. Purchased a delivery truck for $18,000. Paid $4,000 cash and signed a two-year interest-bearing note for the balance.
Transcribed Image Text: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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