Homework Help is Here – Start Your Trial Now!
Business
Accounting
Gil Corporation has current assets of $90,000 and current liabilities of $180,000.   Required: Compute the effect of each of the following independent transactions on Gil’s current ratio: (Round your answers to 2 decimal places. If a transaction does not affect Gil's current ratio, select "is not affected" from the dropdown list and enter "0" or leave the cell blank in the numeric entry field.)   Refinancing a $30,000 long-term mortgage with a short-term note. Purchasing $50,000 of merchandise inventory with short-term accounts payable. Paying $20,000 of short-term accounts payable. Collecting $10,000 of short-term accounts receivable.                 Gil's initial current ratio is:   1. Current ratio:   to   2. Current ratio:   to   3. Current ratio:   to   4. Current ratio:   to

Gil Corporation has current assets of $90,000 and current liabilities of $180,000.   Required: Compute the effect of each of the following independent transactions on Gil’s current ratio: (Round your answers to 2 decimal places. If a transaction does not affect Gil's current ratio, select "is not affected" from the dropdown list and enter "0" or leave the cell blank in the numeric entry field.)   Refinancing a $30,000 long-term mortgage with a short-term note. Purchasing $50,000 of merchandise inventory with short-term accounts payable. Paying $20,000 of short-term accounts payable. Collecting $10,000 of short-term accounts receivable.                 Gil's initial current ratio is:   1. Current ratio:   to   2. Current ratio:   to   3. Current ratio:   to   4. Current ratio:   to

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%

Gil Corporation has current assets of $90,000 and current liabilities of $180,000.

 

Required:

Compute the effect of each of the following independent transactions on Gil’s current ratio: (Round your answers to 2 decimal places. If a transaction does not affect Gil's current ratio, select "is not affected" from the dropdown list and enter "0" or leave the cell blank in the numeric entry field.)

 

  1. Refinancing a $30,000 long-term mortgage with a short-term note.
  2. Purchasing $50,000 of merchandise inventory with short-term accounts payable.
  3. Paying $20,000 of short-term accounts payable.
  4. Collecting $10,000 of short-term accounts receivable.

 

 
 
       
  Gil's initial current ratio is:  
1. Current ratio:   to  
2. Current ratio:   to  
3. Current ratio:   to  
4. Current ratio:   to
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS