Refer to the Tree City Sporting Goods Company data in Short Exercise 3-17. At July 31, 2016,

Question:

Refer to the Tree City Sporting Goods Company data in Short Exercise 3-17.

At July 31, 2016, Tree City Sporting Goods Company's current ratio was 1.90 (rounded) and its debt ratio was 0.45 (rounded). Compute Tree City's

(a) Net working capital,

(b) Current ratio, and

(c) Debt ratio after each of the following transactions (all amounts in thousands, as in the Tree City financial statements):

1. Tree City earned revenue of $12,000 on account.

2. Tree City paid off accounts payable of $12,000.

When calculating the revised ratios, treat each of the above scenarios independently. Round ratios to two decimal places.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...