Gwynn Incorporated had the following transactions involving current assets and current liabilities during February 2017 Additional information: As of February 1, 2017, current assets were $120,000 and current liabilities were $40,000. Instructions Compute the current ratio as of the beginning of the month and after each transaction
Gwynn Incorporated had the following transactions involving current assets and current liabilities during February 2017 Additional information: As of February 1, 2017, current assets were $120,000 and current liabilities were $40,000. Instructions Compute the current ratio as of the beginning of the month and after each transaction
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gwynn Incorporated had the following transactions involving current assets and current liabilities during February 2017
Additional information:
As of February 1, 2017, current assets were $120,000 and current liabilities were $40,000.
Instructions
Compute the
Transcribed Image Text:Feb.
Collected accounts receivable of $15,000.
Purchased equipment for $23,000 cash.
11
3
7
Paid $3,000 for a 1-year insurance policy.
Paid accounts payable of $12,000.
Declared cash dividends, $4,000.
14
18
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