On June 30, Year 3, Baird Company's total current assets were $496,500 and its total current liabilities were $278,500. On July 1, Year 3, Baird issued a short-term note to a bank for $38,200 cash. Required a. Compute Baird's working capital before and after issuing the note. b. Compute Baird's current ratio before and after issuing the note. (Round your answers to 2 decimal places.) Working capital Current ratio Before the transaction After the transaction

On June 30, Year 3, Baird Company's total current assets were $496,500 and its total current liabilities were $278,500. On July 1, Year 3, Baird issued a short-term note to a bank for $38,200 cash. Required a. Compute Baird's working capital before and after issuing the note. b. Compute Baird's current ratio before and after issuing the note. (Round your answers to 2 decimal places.) Working capital Current ratio Before the transaction After the transaction

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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