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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text: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
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