Good Sports, Incorporated, is a private full-line sporting goods retailer. Assume one of the Good Sports stores reported current assets of $89,640 and its current ratio was 1.80, and then completed the following transactions: (1) paid $6,600 on accounts payable, (2) purchased a delivery truck for $13,000 cash, (3) wrote off a bad account receivable for $1,400, and (4) paid previously declared dividends in the amount of $22,000. Required: Compute the updated current ratio after each transaction, by showing the cumulative effects of the transactions in the following table. Note: Round your answers to 2 decimal places. Transaction 1 Transaction 2 Transaction 3 Transaction 4 Current Ratio

Good Sports, Incorporated, is a private full-line sporting goods retailer. Assume one of the Good Sports stores reported current assets of $89,640 and its current ratio was 1.80, and then completed the following transactions: (1) paid $6,600 on accounts payable, (2) purchased a delivery truck for $13,000 cash, (3) wrote off a bad account receivable for $1,400, and (4) paid previously declared dividends in the amount of $22,000. Required: Compute the updated current ratio after each transaction, by showing the cumulative effects of the transactions in the following table. Note: Round your answers to 2 decimal places. Transaction 1 Transaction 2 Transaction 3 Transaction 4 Current 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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