Sandhill Incorporated had the following transactions involving current assets and current liabilities during February 2025. Feb. 3 7 11 14 18 Collected accounts receivable of $13,100. Purchased equipment for $30,400 cash. Paid $2,100 for a 1-year insurance policy. Paid accounts payable of $13,200. Declared cash dividends of $8,900. Additional information: As of February 1, 2025, current assets were $129,600 and current liabilities were $32,000. Compute the current ratio as of the beginning of the month and after each transaction. (Round answers to 2 decimal places, e.g. 1.83: 1.)

Sandhill Incorporated had the following transactions involving current assets and current liabilities during February 2025. Feb. 3 7 11 14 18 Collected accounts receivable of $13,100. Purchased equipment for $30,400 cash. Paid $2,100 for a 1-year insurance policy. Paid accounts payable of $13,200. Declared cash dividends of $8,900. Additional information: As of February 1, 2025, current assets were $129,600 and current liabilities were $32,000. Compute the current ratio as of the beginning of the month and after each transaction. (Round answers to 2 decimal places, e.g. 1.83: 1.)

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Description: Sandhill Incorporated had the following transactions involving current assets and current liabilities during February 2025.Feb. 37111418Additional information:As of February 1, 2025, current assets were $129,600 and current liabilities were $32,000.

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

Sandhill Incorporated had the following transactions involving current assets and current liabilities during February 2025.
Feb. 3
7
11
14
18
Additional information:
As of February 1, 2025, current assets were $129,600 and current liabilities were $32,000.
Compute the current ratio as of the beginning of the month and after each transaction. (Round answers to 2 decimal places, e.g.
1.83: 1.)
Current ratio as of February 1, 2025
Feb. 3
Feb. 7
Collected accounts receivable of $13,100.
Purchased equipment for $30,400 cash.
Paid $2,100 for a 1-year insurance policy.
Paid accounts payable of $13,200.
Declared cash dividends of $8,900.
Feb. 11
Feb. 14
Feb. 18
4.05
6.86
5.25
5.25
:1
:1
:1
:1
:1
:1

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