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

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

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