At its prior year-end, VPN Company reported current assets of $60,000 and current liabilities of $55,000. 1. Acquired inventory for $200 cash. 2. Sold a long-term asset (equipment) for $4,000 cash. 3. Accrued wages payable of $1,500. Determine how each of the above transactions would increase, decrease, or have no effect on total current assets, total current liabilities, and the current ratio. Transaction 1. 2. 3. Current Assets Current Liabilities Current Ratio

At its prior year-end, VPN Company reported current assets of $60,000 and current liabilities of $55,000. 1. Acquired inventory for $200 cash. 2. Sold a long-term asset (equipment) for $4,000 cash. 3. Accrued wages payable of $1,500. Determine how each of the above transactions would increase, decrease, or have no effect on total current assets, total current liabilities, and the current ratio. Transaction 1. 2. 3. Current Assets Current Liabilities 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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