The balance sheet of Mister Ribs Restaurant reports current assets of $60,000 and current liabilities of $30,000. Required: Calculate the current ratio of Mister Ribs Restaurant and determine whether it will increase or decrease as a result of the following transactions. Consider each item, (a) to (d), independent of the others. a. Paid $4,500 cash for a new oven. b. Received a $4,500 cash contribution from an investor for the company's common stock. c. Borrowed $18,600 cash from a bank, issuing a note that must be repaid in three years. d. Purchased $1,500 of napkins, paper cups, and other disposable supplies on account. Complete this question by entering your answers in the tabs below.

The balance sheet of Mister Ribs Restaurant reports current assets of $60,000 and current liabilities of $30,000. Required: Calculate the current ratio of Mister Ribs Restaurant and determine whether it will increase or decrease as a result of the following transactions. Consider each item, (a) to (d), independent of the others. a. Paid $4,500 cash for a new oven. b. Received a $4,500 cash contribution from an investor for the company's common stock. c. Borrowed $18,600 cash from a bank, issuing a note that must be repaid in three years. d. Purchased $1,500 of napkins, paper cups, and other disposable supplies on account. Complete this question by entering your answers in the tabs below.

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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