Bennis SA had the following transactions occur involving current assets and current liabilities during February 2017 Feb 3 Accounts receivable of R$15,000 are collected 7 Equipment is purchased for R$28,000 cash 11 Paid R$3,000 for a 3 year insurance policy 14 Accounts payable of R$12,000 are paid ...

a Current ratio as of February 1 2017 281 R140000 R ...

Bennis SA had the following transactions occur involving current assets and current liabilities during February 2017. Feb.

Question:

Bennis SA had the following transactions occur involving current assets and current liabilities during February 2017.
Feb. 3 of R$15,000 are collected.
7 Equipment is purchased for R$28,000 cash.
11 Paid R$3,000 for a 3-year insurance policy.
14 of R$12,000 are paid.
18 Cash dividends of R$5,000 are declared.
Additional information:
1. As of February 1, 2017, current assets were R$140,000, and current liabilities were R$50,000.
2. As of February 1, 2017, current assets included R$10,000 of inventory and R$5,000 of prepaid expenses.
Instructions
(a) Compute the current ratio as of the beginning of the month and after each transaction.
(b) Compute the acid-test ratio as of the beginning of the month and after each transaction?
Accounts Payable
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