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Current assets for Clarke Inc. totalled $1,037,400, the current ratio was 2.10, and the company uses the periodic inventory method. Assume that the following transactions were completed: (1) Sold $24,700 in merchandise on account. (2) Declared but did not pay dividends of $38,300. (3) Paid rent in advance in the amount of $24,800. (4) Paid previously declared dividends in the amount of $38,300. (5) Collected a accounts receivable in the amount of $33,500. (6) Reclassified $95,000 of long-term debt as a short-term liability. Required: Assume that Clarke's Inc. uses periodic inventory system, compute the current ratio after each transaction. (Round the final answers to 2 decimal places.) Transaction (1) Transaction (2) Transaction (3) Transaction (4) Transaction (5) Transaction (6) Current Ratio 2.15 2.00 2.00 2.07 2.07 1.74

Current assets for Clarke Inc. totalled $1,037,400, the current ratio was 2.10, and the company uses the periodic inventory method. Assume that the following transactions were completed: (1) Sold $24,700 in merchandise on account. (2) Declared but did not pay dividends of $38,300. (3) Paid rent in advance in the amount of $24,800. (4) Paid previously declared dividends in the amount of $38,300. (5) Collected a accounts receivable in the amount of $33,500. (6) Reclassified $95,000 of long-term debt as a short-term liability. Required: Assume that Clarke's Inc. uses periodic inventory system, compute the current ratio after each transaction. (Round the final answers to 2 decimal places.) Transaction (1) Transaction (2) Transaction (3) Transaction (4) Transaction (5) Transaction (6) Current Ratio 2.15 2.00 2.00 2.07 2.07 1.74

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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Current assets for Clarke Inc. totalled $1,037,400, the current ratio was 2.10, and the company uses the periodic inventory method. Assume that the following transactions were completed: (1) Sold $24,700 in merchandise on account. (2) Declared but did not pay dividends of $38,300. (3) Paid rent in advance in the amount of $24,800. (4) Paid previously declared dividends in the amount of $38,300. (5) Collected a accounts receivable in the amount of $33,500. (6) Reclassified $95,000 of long-term debt as a short-term liability. Required: Assume that Clarke's Inc. uses periodic inventory system, compute the current ratio after each transaction. (Round the final answers to 2 decimal places.) Transaction (1) Transaction (2) Transaction (3) Transaction (4) Transaction (5) Transaction (6) Current Ratio 2.15 2.00 2.00 2.07 2.07 1.74
Transcribed Image Text:Current assets for Clarke Inc. totalled $1,037,400, the current ratio was 2.10, and the company uses the periodic inventory method. Assume that the following transactions were completed: (1) Sold $24,700 in merchandise on account. (2) Declared but did not pay dividends of $38,300. (3) Paid rent in advance in the amount of $24,800. (4) Paid previously declared dividends in the amount of $38,300. (5) Collected a accounts receivable in the amount of $33,500. (6) Reclassified $95,000 of long-term debt as a short-term liability. Required: Assume that Clarke's Inc. uses periodic inventory system, compute the current ratio after each transaction. (Round the final answers to 2 decimal places.) Transaction (1) Transaction (2) Transaction (3) Transaction (4) Transaction (5) Transaction (6) Current Ratio 2.15 2.00 2.00 2.07 2.07 1.74
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