
(a)
Current liability: Every company has some debts or liabilities which need to be paid in less than one year or during current accounting period. Those debts or liabilities are called current liabilities.
To compute: The working capital and current ratio of company M.
(b).
To compute: The working capital and current ratio after company 3 paid $200 million accounts payable by cash.

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Chapter 11 Solutions
Accounting Principles, Volume 2: Chapters 13 - 26
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