Current assets for JC Inc. totalled $34,440, and the current ratio was 164. Assume that the following transactions were completed: (1)Purchased merchandise for $6,500 on short term credit. (2) Purchased a delivery truck for $15,000-paid $4125 cash and signed a two-year interest bearing note for the balance. Required: 1. Determine without computations if the current ratio will increase, decrease, or remain unchanged after each transaction. Impact on Current Ratio Transaction (1) Transaction (2) 2. Compute the current ratio after each transaction. (Round the final answers to 2 decimal places.) Transaction (1) Transaction (2) Current Ratio

Current assets for JC Inc. totalled $34,440, and the current ratio was 164. Assume that the following transactions were completed: (1)Purchased merchandise for $6,500 on short term credit. (2) Purchased a delivery truck for $15,000-paid $4125 cash and signed a two-year interest bearing note for the balance. Required: 1. Determine without computations if the current ratio will increase, decrease, or remain unchanged after each transaction. Impact on Current Ratio Transaction (1) Transaction (2) 2. Compute the current ratio after each transaction. (Round the final answers to 2 decimal places.) Transaction (1) Transaction (2) Current Ratio

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Description: Don't give answer in image format E12-7 Analyzing the Impact of Selected Transactions on the Current Ratio LO12-8Current assets for JC Inc. totalled $34,440, and the current ratio was 1.64. Assume that the following transactions were completed:(1)Pur

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.10P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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