Current assets for Clarke Inc. totalled $743,580, the current ratio was 1.80, and the company uses the periodic inventory method. Assume that the following transactions were completed: (1) Sold $20,655 in merchandise on account. (2) Declared but did not pay dividends of $35,300. (3) Paid rent in advance in the amount of $28,500. (4) Paid previously declared dividends in the amount of $35,300. (5) Collected a accounts receivable in the amount of $30,000. (6) Reclassified $79,900 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
Current assets for Clarke Inc. totalled $743,580, the current ratio was 1.80, and the company uses the periodic inventory method. Assume that the following transactions were completed: (1) Sold $20,655 in merchandise on account. (2) Declared but did not pay dividends of $35,300. (3) Paid rent in advance in the amount of $28,500. (4) Paid previously declared dividends in the amount of $35,300. (5) Collected a accounts receivable in the amount of $30,000. (6) Reclassified $79,900 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current assets for Clarke Inc. totalled $743,580, the current ratio
was 1.80, and the company uses the periodic inventory method.
Assume that the following transactions were completed:
(1) Sold $20,655 in merchandise on account.
(2) Declared but did not pay dividends of $35,300.
(3) Paid rent in advance in the amount of $28,500.
(4) Paid previously declared dividends in the amount of $35,300.
(5) Collected a accounts receivable in the amount of $30,000.
(6) Reclassified $79,900 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
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