Compute the current ratio as of the beginning of the month and after each transaction.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Lily Incorporated had the following transactions involving current assets and current liabilities during February 2022.
Feb. 3
7
11
14
18
Collected accounts receivable of $14,000.
Purchased equipment for $27,100 cash.
Paid $3,300 for a 1-year insurance policy.
Paid accounts payable of $11,000.
Declared cash dividends of $5,600.
Additional information:
As of February 1, 2022, current assets were $133,920 and current liabilities were $49,600.
Compute the current ratio as of the beginning of the month and after each transaction. (Round answers to 2 decimal places, e.g. 1.
February 1
February 3
Chapter 16
Question 4 of 6 <
February 11
As of February 1, 2022, current assets were $133,920 and current liabilities were $49,600.
February 3
February 7
Compute the current ratio as of the beginning of the month and after each transaction. (Round answers to 2 decimal places, e.g. 1.67)
February 11
Current ratio
February 14
February 18
Current ratio
:1
:1
:1
11
:1
11
:1
:1
-/15 E ⠀
Transcribed Image Text:Current Attempt in Progress Lily Incorporated had the following transactions involving current assets and current liabilities during February 2022. Feb. 3 7 11 14 18 Collected accounts receivable of $14,000. Purchased equipment for $27,100 cash. Paid $3,300 for a 1-year insurance policy. Paid accounts payable of $11,000. Declared cash dividends of $5,600. Additional information: As of February 1, 2022, current assets were $133,920 and current liabilities were $49,600. Compute the current ratio as of the beginning of the month and after each transaction. (Round answers to 2 decimal places, e.g. 1. February 1 February 3 Chapter 16 Question 4 of 6 < February 11 As of February 1, 2022, current assets were $133,920 and current liabilities were $49,600. February 3 February 7 Compute the current ratio as of the beginning of the month and after each transaction. (Round answers to 2 decimal places, e.g. 1.67) February 11 Current ratio February 14 February 18 Current ratio :1 :1 :1 11 :1 11 :1 :1 -/15 E ⠀
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