Exercise 14-6A (Algo) Working capital and current ratio LO 14-2 On June 30, Year 3, Perez Company's total current assets were $501,000 and its total current liabilities were $279,500. On July 1 Year 3. Perez issued a short-term note to a bank for $40,200 cash. Required a. Compute Perez's working capital before and after issuing the note. b. Compute Perez's current ratio before and after issuing the note. (Round your answers to 2 decimal places.) Working capital b. Current ratio Before the Transaction After the Transaction

Exercise 14-6A (Algo) Working capital and current ratio LO 14-2 On June 30, Year 3, Perez Company's total current assets were $501,000 and its total current liabilities were $279,500. On July 1 Year 3. Perez issued a short-term note to a bank for $40,200 cash. Required a. Compute Perez's working capital before and after issuing the note. b. Compute Perez's current ratio before and after issuing the note. (Round your answers to 2 decimal places.) Working capital b. Current ratio Before the Transaction After the Transaction

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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