On October 31, 2012, Henderson Companys total current assets were $65,000 and its total current liabilities were

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On October 31, 2012, Henderson Company’s total current assets were $65,000 and its total current liabilities were $20,000. On November 1, 2012, Henderson bought manufacturing equipment for $10,000 cash.

Required

a. Compute Henderson’s working capital before and after the equipment purchase.

b. Compute Henderson’s current ratio before and after the equipment purchase.

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Fundamental Managerial Accounting Concepts

ISBN: 978-0078110894

6th Edition

Authors: Edmonds, Tsay, olds

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Question Posted: Dec 07, 2011 06:51 AM

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On October 31, 2012, Henderson Companys total current assets were $65,000 and its total current liabilities were

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a Working capital before the securities purchase Current assets Current ...View the full answer

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