Compute the effect of each of the following independent transactions on Gil's current ratio: (Round your answers to 2 decimal places. If a transaction does not affect Gil's current ratio, select "Is not affected" from the dropdown list and enter "O" or leave the cell blank in the numeric entry field.) 1. Refinancing a $30,000 long-term mortgage with a short-term note. 2. Purchasing $50,000 of merchandise Inventory with short-term accounts payable. 3. Paying $20,000 of short-term accounts payable. 4. Collecting $10,000 of short-term accounts receivable. 1. WN - 2. 3. 4. Gil's initial current ratio is Current ratio Current ratio Current ratio Current ratio to to to to
Compute the effect of each of the following independent transactions on Gil's current ratio: (Round your answers to 2 decimal places. If a transaction does not affect Gil's current ratio, select "Is not affected" from the dropdown list and enter "O" or leave the cell blank in the numeric entry field.) 1. Refinancing a $30,000 long-term mortgage with a short-term note. 2. Purchasing $50,000 of merchandise Inventory with short-term accounts payable. 3. Paying $20,000 of short-term accounts payable. 4. Collecting $10,000 of short-term accounts receivable. 1. WN - 2. 3. 4. Gil's initial current ratio is Current ratio Current ratio Current ratio Current ratio to to to to
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Gil Corporation has current assets of $90,000 and current liabilities of $180,000.
Required:
Compute the effect of each of the following Independent transactions on Gil's current ratio: (Round your answers to 2 decimal places.
If a transaction does not affect Gil's current ratlo, select "Is not affected" from the dropdown list and enter "0" or leave the cell
blank in the numeric entry field.)
1. Refinancing a $30,000 long-term mortgage with a short-term note.
2. Purchasing $50,000 of merchandise Inventory with short-term accounts payable.
3. Paying $20,000 of short-term accounts payable.
4. Collecting $10,000 of short-term accounts receivable.
1.
2.
3.
4.
Gil's initial current ratio is
Current ratio
Current ratio
Current ratio
Current ratio
to
to
to
to
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