On June 30, 2011, Weslaco Companys total current assets were $500,000 and its total current liabilities were

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On June 30, 2011, Weslaco Company’s total current assets were $500,000 and its total current liabilities were $275,000. On July 1, 2011, Weslaco issued a short-term note to a bank for $40,000 cash.

Required

a. Compute Weslaco’s working capital before and after issuing the note.

b. Compute Weslaco’s current ratio before and after issuing the note.

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Fundamental Managerial Accounting Concepts

ISBN: 978-0078110894

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Authors: Edmonds, Tsay, olds

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Question Posted: Dec 07, 2011 06:52 AM

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On June 30, 2011, Weslaco Companys total current assets were $500,000 and its total current liabilities were

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a Working capital before the transaction Current assets Current liabilities 500...View the full answer

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