In its most recent annual report, Appalachian Beverages reported current assets of $49,300 and a current ratio of 1.70. Assume that the following transactions were completed: (1) purchased merchandise for $5,900 on account and (2) purchased a delivery truck for $10,000, paying $2,000 cash and signing a two-year promissory note for the balance. Required: Compute the updated current ratio after each transaction, by showing the cumulative effects of the transactions in the following table. (Round your answers to 2 decimal places.) Current Ratio Transaction (1) Transaction (2)

In its most recent annual report, Appalachian Beverages reported current assets of $49,300 and a current ratio of 1.70. Assume that the following transactions were completed: (1) purchased merchandise for $5,900 on account and (2) purchased a delivery truck for $10,000, paying $2,000 cash and signing a two-year promissory note for the balance. Required: Compute the updated current ratio after each transaction, by showing the cumulative effects of the transactions in the following table. (Round your answers to 2 decimal places.) Current Ratio Transaction (1) Transaction (2)

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Description: In its most recent annual report, Appalachian Beverages reported current assets of $49,300 and a currentratio of 1.70. Assume that the following transactions were completed: (1) purchased merchandise for $5,900on account and (2) purchased a delivery

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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