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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

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

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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### Problem Statement **Context:** 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.)* ### Analysis Table | | Before the Transaction | After the Transaction | |-------------------------------|------------------------|-----------------------| | a. Working capital | | | | b. Current ratio | | |
Transcribed Image Text:### Problem Statement **Context:** 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.)* ### Analysis Table | | Before the Transaction | After the Transaction | |-------------------------------|------------------------|-----------------------| | a. Working capital | | | | b. Current ratio | | |
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