Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries Inc. follow: Cash $432,500 Marketable securities 162,500 Accounts and notes receivable (net) 325,000 Inventories 750,000 Prepaid expenses 44,000 Accounts payable 230,000 Notes payable (short-term) 240,000 Accrued expenses 305,000 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 a. Sold marketable securities at no gain or loss, $80,000. b. Paid accounts payable, $145,000. c. Purchased goods on account, $105,000. d. Paid notes payable, $110,000. e. Declared a cash dividend, $145,000. Working Capital Current Ratio Quick Ratio

Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries Inc. follow: Cash $432,500 Marketable securities 162,500 Accounts and notes receivable (net) 325,000 Inventories 750,000 Prepaid expenses 44,000 Accounts payable 230,000 Notes payable (short-term) 240,000 Accrued expenses 305,000 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 a. Sold marketable securities at no gain or loss, $80,000. b. Paid accounts payable, $145,000. c. Purchased goods on account, $105,000. d. Paid notes payable, $110,000. e. Declared a cash dividend, $145,000. Working Capital Current Ratio Quick Ratio

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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