Answered: Delta Inc. has a current ratio of 2.5…

Delta Inc. has a current ratio of 2.5 with current liabilities of $600,000. If the board declares a cash dividend of $250,000, what will be the new current ratio after declaration but before payment?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 7GI

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I am looking for the correct answer to this general accounting question with appropriate explanations.

Delta Inc. has a current ratio of 2.5 with current liabilities of
$600,000. If the board declares a cash dividend of $250,000, what
will be the new current ratio after declaration but before payment?

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