Assume current assets totaled $62,000 and the current ratio was 1.2 before the following independent transactions: 1. Purchased merchandise for $7,000 on short-term credit. 2. Purchased a delivery truck for $18,000. Paid $4,000 cash and signed a two-year interest-bearing note for the balance.

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 41E
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Hh1.

Assume current assets totaled $62,000 and the current ratio was 1.2 before the following independent transactions:

1. Purchased merchandise for $7,000 on short-term credit.

2. Purchased a delivery truck for $18,000. Paid $4,000 cash and signed a two-year interest-bearing note for the balance. 

 

 

 

 

Required:
Compute the current ratio after each independent transaction.
Note: Round your answers to 2 decimal places.
Transaction
(1)
(2)
Current Ratio
Transcribed Image Text:Required: Compute the current ratio after each independent transaction. Note: Round your answers to 2 decimal places. Transaction (1) (2) Current Ratio
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