In its most recent annual report, Appalachian Beverages reported current assets of $54,000 and acurrent ratio of 1.80. Assume that the following transactions were completed: (1) purchased merchandise for $6,000 on account and (2) purchased a delivery truck for $10,000, paying $1,000 cashand signing a two-year promissory note for the balance.Required:Compute the updated current ratio, rounded to two decimal places, after each transaction.
In its most recent annual report, Appalachian Beverages reported current assets of $54,000 and acurrent ratio of 1.80. Assume that the following transactions were completed: (1) purchased merchandise for $6,000 on account and (2) purchased a delivery truck for $10,000, paying $1,000 cashand signing a two-year promissory note for the balance.Required:Compute the updated current ratio, rounded to two decimal places, after each transaction.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In its most recent annual report, Appalachian Beverages reported current assets of $54,000 and a
and signing a two-year promissory note for the balance.
Required:
Compute the updated current ratio, rounded to two decimal places, after each transaction.
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