Data pertaining to the current position of Lucroy Industries Inc. follow: Cash $430,000 Marketable securities 180,000 Accounts and notes receivable (net) 315,000 Inventories 700,000 Prepaid expenses 40,000 Accounts payable 220,000 Notes payable (short-term) 240,000 Accrued expenses 325,000 Required: 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. a. Working capital $ b. Current ratio c. Quick ratio 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place. Transaction Working Capital Current Ratio Quick Ratio a. Sold marketable securities at no gain or loss, $80,000. $fill in the blank 4 fill in the blank 5 fill in the blank 6 b. Paid accounts payable, $120,000. $fill in the blank 7 fill in the blank 8 fill in the blank 9 c. Purchased goods on account, $115,000. $fill in the blank 10 fill in the blank 11 fill in the blank 12 d. Paid notes payable, $110,000. $fill in the blank 13 fill in the blank 14 fill in the blank 15 e. Declared a cash dividend, $135,000. $fill in the blank 16 fill in the blank 17 fill in the blank 18 f. Declared a common stock dividend on common stock, $40,000. $fill in the blank 19 fill in the blank 20 fill in the blank 21 g. Borrowed cash from bank on a long-term note, $215,000. $fill in the blank 22 fill in the blank 23 fill in the blank 24 h. Received cash on account, $145,000. $fill in the blank 25 fill in the blank 26 fill in the blank 27 i. Issued additional shares of stock for cash, $640,000. $fill in the blank 28 fill in the blank 29 fill in the blank 30 j. Paid cash for prepaid expenses, $8,000. $fill in the blank 31 fill in the blank 32 fill in the blank 33

Data pertaining to the current position of Lucroy Industries Inc. follow: Cash $430,000 Marketable securities 180,000 Accounts and notes receivable (net) 315,000 Inventories 700,000 Prepaid expenses 40,000 Accounts payable 220,000 Notes payable (short-term) 240,000 Accrued expenses 325,000 Required: 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. a. Working capital $ b. Current ratio c. Quick ratio 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place. Transaction Working Capital Current Ratio Quick Ratio a. Sold marketable securities at no gain or loss, $80,000. $fill in the blank 4 fill in the blank 5 fill in the blank 6 b. Paid accounts payable, $120,000. $fill in the blank 7 fill in the blank 8 fill in the blank 9 c. Purchased goods on account, $115,000. $fill in the blank 10 fill in the blank 11 fill in the blank 12 d. Paid notes payable, $110,000. $fill in the blank 13 fill in the blank 14 fill in the blank 15 e. Declared a cash dividend, $135,000. $fill in the blank 16 fill in the blank 17 fill in the blank 18 f. Declared a common stock dividend on common stock, $40,000. $fill in the blank 19 fill in the blank 20 fill in the blank 21 g. Borrowed cash from bank on a long-term note, $215,000. $fill in the blank 22 fill in the blank 23 fill in the blank 24 h. Received cash on account, $145,000. $fill in the blank 25 fill in the blank 26 fill in the blank 27 i. Issued additional shares of stock for cash, $640,000. $fill in the blank 28 fill in the blank 29 fill in the blank 30 j. Paid cash for prepaid expenses, $8,000. $fill in the blank 31 fill in the blank 32 fill in the blank 33

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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Question

Effect of Transactions on Current Position Analysis

Data pertaining to the current position of Lucroy Industries Inc. follow:

Cash	$430,000
Marketable securities	180,000
Accounts and notes receivable (net)	315,000
Inventories	700,000
Prepaid expenses	40,000
Accounts payable	220,000
Notes payable (short-term)	240,000
Accrued expenses	325,000

Required:

1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place.

a. Working capital	$
b. Current ratio
c. Quick ratio

2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place.

Transaction	Working Capital	Current Ratio	Quick Ratio
a. Sold marketable securities at no gain or loss, $80,000.	$fill in the blank 4		fill in the blank 5	fill in the blank 6
b. Paid accounts payable, $120,000.	$fill in the blank 7		fill in the blank 8	fill in the blank 9
c. Purchased goods on account, $115,000.	$fill in the blank 10		fill in the blank 11	fill in the blank 12
d. Paid notes payable, $110,000.	$fill in the blank 13		fill in the blank 14	fill in the blank 15
e. Declared a cash dividend, $135,000.	$fill in the blank 16		fill in the blank 17	fill in the blank 18
f. Declared a common stock dividend on common stock, $40,000.	$fill in the blank 19		fill in the blank 20	fill in the blank 21
g. Borrowed cash from bank on a long-term note, $215,000.	$fill in the blank 22		fill in the blank 23	fill in the blank 24
h. Received cash on account, $145,000.	$fill in the blank 25		fill in the blank 26	fill in the blank 27
i. Issued additional shares of stock for cash, $640,000.	$fill in the blank 28		fill in the blank 29	fill in the blank 30
j. Paid cash for prepaid expenses, $8,000.	$fill in the blank 31		fill in the blank 32	fill in the blank 33

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