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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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.
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