On June 30, Year 3, Munoz Company's total current assets were $504,000 and its total current liabilities were $270,000. On July 1, Year 3, Munoz issued a short-term note to a bank for $39,000 cash. Required a. Compute Munoz's working capital before and after issuing the note. b. Compute Munoz's current ratio before and after issuing the note. (Round your answers to 2 decimal places.) b. Working capital Current ratio Before the transaction After the transaction
On June 30, Year 3, Munoz Company's total current assets were $504,000 and its total current liabilities were $270,000. On July 1, Year 3, Munoz issued a short-term note to a bank for $39,000 cash. Required a. Compute Munoz's working capital before and after issuing the note. b. Compute Munoz's current ratio before and after issuing the note. (Round your answers to 2 decimal places.) b. Working capital Current ratio Before the transaction After the transaction
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer in text form please (without image), Note: .Every entry should have narration please
Transcribed Image Text:On June 30, Year 3, Munoz Company's total current assets were $504,000 and its total current liabilities were $270,000. On July 1.
Year 3, Munoz issued a short-term note to a bank for $39,000 cash.
Required
a. Compute Munoz's working capital before and after issuing the note.
b. Compute Munoz's current ratio before and after issuing the note. (Round your answers to 2 decimal places.)
a
Working capital
Current ratio
Before the
transaction
After the
transaction
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