On June 30, Year 3, Rundle Company's total current assets were $497,500 and its total current liabilities were $271,500. On July 1, Year 3, Rundle issued a long-term note to a bank for $41,200 cash. Required a. Compute Rundle's working capital before and after issuing the note. b. Compute Rundle's current ratio before and after issuing the note. (Round your answers to 1 decimal place.) Before the Transaction After the Transaction a. Working capital b. Current ratio
On June 30, Year 3, Rundle Company's total current assets were $497,500 and its total current liabilities were $271,500. On July 1, Year 3, Rundle issued a long-term note to a bank for $41,200 cash. Required a. Compute Rundle's working capital before and after issuing the note. b. Compute Rundle's current ratio before and after issuing the note. (Round your answers to 1 decimal place.) Before the Transaction After the Transaction a. Working capital b. Current ratio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![On June 30, Year 3, Rundle Company's total current assets were $497,500 and its total current liabilities were $271,500. On July 1,
Year 3, Rundle issued a long-term note to a bank for $41,200 cash.
Required
a. Compute Rundle's working capital before and after issuing the note.
b. Compute Rundle's current ratio before and after issuing the note. (Round your answers to 1 decimal place.)
Before the
Transaction
After the
Transaction
a. Working capital
b. Current ratio](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdf9c49b9-ebc3-4254-9011-25d5959a8511%2F4257537a-10c5-418e-84a5-a743619a1463%2Fb4n98n_processed.png&w=3840&q=75)
Transcribed Image Text:On June 30, Year 3, Rundle Company's total current assets were $497,500 and its total current liabilities were $271,500. On July 1,
Year 3, Rundle issued a long-term note to a bank for $41,200 cash.
Required
a. Compute Rundle's working capital before and after issuing the note.
b. Compute Rundle's current ratio before and after issuing the note. (Round your answers to 1 decimal place.)
Before the
Transaction
After the
Transaction
a. Working capital
b. Current ratio
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