Gwynn Incorporated had the following transactions involving current assets and current liabilities during February 2019.
Feb. 3 Collected accounts receivable of $15,000.
7 Purchased equipment for $23,000 cash.
11 Paid $3,000 for a 1-year insurance policy.
14 Paid accounts payable of $12,000.
18 Declared cash dividends, $4,000.
Additional information:
As of February 1, 2019, current assets were $120,000 and current liabilities were $40,000.
Instructions
Compute the current ratio as of the beginning of the month and after each transaction.