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Compute the company's current ratio for 2018, 2019, and 2020. (Round your answers to 2 decimal places.) Year Current Ratio 2018 2019 2020

Compute the company's current ratio for 2018, 2019, and 2020. (Round your answers to 2 decimal places.) Year Current Ratio 2018 2019 2020

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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Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions occurred during the year: a. Received cash from investors in exchange for 17,000 shares of stock (par value of $1.00 per share) with a market value of $11 per share. b. Purchased land in Wisconsin for $19,000, signing a one-year note (ignore interest). c. Bought two used delivery trucks for operating purposes at the start of the year at a cost of $12,000 each; paid $2,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $1,200 cash to a truck repair shop for a new motor for one of the trucks. (Increase the account you used to record the purchase of the trucks because the productive life of the truck has been improved) e. Sold one-fourth of the land for $4,750 to Pablo Development Corporation, which signed a six-month note. f. Stockholder Helen Bailey paid $29,300 cash for a vacant lot (land) in Canada for her personal use. 4. At the end of the next two years, Bailey Delivery Company reported the following amounts on its balance sheets: December 31, 2019 $ 55,000 43,000 98,000 21,000 December 31, 2020 $ 49,000 79,000 128,000 Current Assets Long-Term Assets Total Assets Short-Term Notes Payable 15,000 36,000 36, 0০০ 24,000 60,000 Long-Term Notes Payable Total Liabilities Stockholders' Equity 62,000 68,000 Compute the company's current ratio for 2018, 2019, and 2020. (Round your answers to 2 decimal places.) Year Current Ratio 2018 2019 2020
Transcribed Image Text:Bailey Delivery Company, Inc., was organized in 2018 in Wisconsin. The following transactions occurred during the year: a. Received cash from investors in exchange for 17,000 shares of stock (par value of $1.00 per share) with a market value of $11 per share. b. Purchased land in Wisconsin for $19,000, signing a one-year note (ignore interest). c. Bought two used delivery trucks for operating purposes at the start of the year at a cost of $12,000 each; paid $2,000 cash and signed a note due in three years for the rest (ignore interest). d. Paid $1,200 cash to a truck repair shop for a new motor for one of the trucks. (Increase the account you used to record the purchase of the trucks because the productive life of the truck has been improved) e. Sold one-fourth of the land for $4,750 to Pablo Development Corporation, which signed a six-month note. f. Stockholder Helen Bailey paid $29,300 cash for a vacant lot (land) in Canada for her personal use. 4. At the end of the next two years, Bailey Delivery Company reported the following amounts on its balance sheets: December 31, 2019 $ 55,000 43,000 98,000 21,000 December 31, 2020 $ 49,000 79,000 128,000 Current Assets Long-Term Assets Total Assets Short-Term Notes Payable 15,000 36,000 36, 0০০ 24,000 60,000 Long-Term Notes Payable Total Liabilities Stockholders' Equity 62,000 68,000 Compute the company's current ratio for 2018, 2019, and 2020. (Round your answers to 2 decimal places.) Year Current Ratio 2018 2019 2020
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