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

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5PA: The following selected accounts and their current balances appear in the ledger of Clairemont Co....

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