On June 30, Year 3, Solomon Company's total current assets were $497,500 and its total current liabilities were $270,000. On July 1, Year 3, Solomon issued a long-term note to a bank for $41,000 cash. Required a. Compute Solomon's working capital before and after issuing the note. b. Compute Solomon's current ratio before and after issuing the note. (Round your answers to 1 decimal place.) Before the transaction After the transaction Working capital a. b. Current ratio
On June 30, Year 3, Solomon Company's total current assets were $497,500 and its total current liabilities were $270,000. On July 1, Year 3, Solomon issued a long-term note to a bank for $41,000 cash. Required a. Compute Solomon's working capital before and after issuing the note. b. Compute Solomon's current ratio before and after issuing the note. (Round your answers to 1 decimal place.) Before the transaction After the transaction Working capital a. b. Current ratio
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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![On June 30, Year 3, Solomon Company's total current assets were $497,500 and its total current liabilities were $270,000. On July 1.
Year 3, Solomon issued a long-term note to a bank for $41,000 cash.
Required
a. Compute Solomon's working capital before and after issuing the note.
b. Compute Solomon'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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Transcribed Image Text:On June 30, Year 3, Solomon Company's total current assets were $497,500 and its total current liabilities were $270,000. On July 1.
Year 3, Solomon issued a long-term note to a bank for $41,000 cash.
Required
a. Compute Solomon's working capital before and after issuing the note.
b. Compute Solomon'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
< Prey
4 of 6
Next >
MacBook Air
80
88
DII
DD
F2
F3
F6
F7
F8
F9
F10
F11
@
#
$
&
2
3
4
7
8
W
E
Y
0 P
S
D
G
H J
K
CV
N
M
%3D
R
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