QS 17-10 (Algo) Analyzing effect of transactions on current ratio LO P3 At Its prior year-end, VPN Company reported current assets of $60,500 and current liabilities of $55,200. 1. Acquired Inventory for $220 cash. 2. Sold a long-term asset (equipment) for $4,100 cash. 3. Accrued wages payable of $1,600. Determine how each of the above transactions would increase, decrease, or have no effect on total current assets, total current liabilities, and the current ratio. Transaction 1. 2. 3. Current Assets Current Liabilities Current Ratio

QS 17-10 (Algo) Analyzing effect of transactions on current ratio LO P3 At Its prior year-end, VPN Company reported current assets of $60,500 and current liabilities of $55,200. 1. Acquired Inventory for $220 cash. 2. Sold a long-term asset (equipment) for $4,100 cash. 3. Accrued wages payable of $1,600. Determine how each of the above transactions would increase, decrease, or have no effect on total current assets, total current liabilities, and the current ratio. Transaction 1. 2. 3. Current Assets Current Liabilities Current Ratio

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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