Ivanhoe Incorporated had the following transactions involving current assets and current liabilities during February 2027. Feb. 3 Collected accounts receivable of $10,300. 7 Purchased equipment for $34,300 cash. 11 Paid $3,500 for a 1-year insurance policy. 14 Paid accounts payable of $14,400. 18 Declared cash dividends of $7,000. Additional information: As of February 1, 2027, current assets were $128,770 and current liabilities were $32,600. Compute the current ratio as of the beginning of the month and after each transaction. (Round answers to 2 decimal places, e.g. 1.83.) Current ratio as of February 1, 2027 :1 Feb. 3 Feb. 7 Feb. 11 Feb. 14 :1 1 :1 :1 Feb. 18 :1
Ivanhoe Incorporated had the following transactions involving current assets and current liabilities during February 2027. Feb. 3 Collected accounts receivable of $10,300. 7 Purchased equipment for $34,300 cash. 11 Paid $3,500 for a 1-year insurance policy. 14 Paid accounts payable of $14,400. 18 Declared cash dividends of $7,000. Additional information: As of February 1, 2027, current assets were $128,770 and current liabilities were $32,600. Compute the current ratio as of the beginning of the month and after each transaction. (Round answers to 2 decimal places, e.g. 1.83.) Current ratio as of February 1, 2027 :1 Feb. 3 Feb. 7 Feb. 11 Feb. 14 :1 1 :1 :1 Feb. 18 :1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Ivanhoe Incorporated had the following transactions involving current assets and current liabilities during February 2027.
Feb. 3
Collected accounts receivable of $10,300.
7
Purchased equipment for $34,300 cash.
11
Paid $3,500 for a 1-year insurance policy.
14
Paid accounts payable of $14,400.
18
Declared cash dividends of $7,000.
Additional information:
As of February 1, 2027, current assets were $128,770 and current liabilities were $32,600.
Compute the current ratio as of the beginning of the month and after each transaction. (Round answers to 2 decimal places, e.g. 1.83.)
Current ratio as of February 1, 2027
:1
Feb. 3
Feb. 7
Feb. 11
Feb. 14
:1
1
:1
:1
Feb. 18
:1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbbe33aa2-1752-4ed3-832e-b436aed5d24a%2F1c84a619-fc70-4040-a7ae-bf61e74ea3f8%2F2fkom6g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ivanhoe Incorporated had the following transactions involving current assets and current liabilities during February 2027.
Feb. 3
Collected accounts receivable of $10,300.
7
Purchased equipment for $34,300 cash.
11
Paid $3,500 for a 1-year insurance policy.
14
Paid accounts payable of $14,400.
18
Declared cash dividends of $7,000.
Additional information:
As of February 1, 2027, current assets were $128,770 and current liabilities were $32,600.
Compute the current ratio as of the beginning of the month and after each transaction. (Round answers to 2 decimal places, e.g. 1.83.)
Current ratio as of February 1, 2027
:1
Feb. 3
Feb. 7
Feb. 11
Feb. 14
:1
1
:1
:1
Feb. 18
:1
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