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On June 30, 2018, Jordan Company's total current assets were $500,500 and its total current liabilities were $274,500. On July 1, 2018, Jordan issued a long-term note to a bank for $40,200 cash. Required a. Compute Jordan's working capital before and after issuing the note. . Compute Jordan's current ratio before and after issuing the note. (Round your answers to 1 decimal place.) Before the After the

On June 30, 2018, Jordan Company's total current assets were $500,500 and its total current liabilities were $274,500. On July 1, 2018, Jordan issued a long-term note to a bank for $40,200 cash. Required a. Compute Jordan's working capital before and after issuing the note. . Compute Jordan's current ratio before and after issuing the note. (Round your answers to 1 decimal place.) Before the After the

FINANCIAL ACCOUNTING
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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On June 30, 2018, Jordan Company's total current assets were $500,500 and its total current liabilities were $274,500. On July 1, 2018, Jordan issued a long-term note to a bank for $40,200 cash. Required a. Compute Jordan's working capital before and after issuing the note. b. Compute Jordan's current ratio before and after issuing the note. (Round your answers to 1 decimal place.) Before the transaction Working Capital $ 226,000 Current Ratio 1.8 After the transaction
Transcribed Image Text:On June 30, 2018, Jordan Company's total current assets were $500,500 and its total current liabilities were $274,500. On July 1, 2018, Jordan issued a long-term note to a bank for $40,200 cash. Required a. Compute Jordan's working capital before and after issuing the note. b. Compute Jordan's current ratio before and after issuing the note. (Round your answers to 1 decimal place.) Before the transaction Working Capital $ 226,000 Current Ratio 1.8 After the transaction
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