Refer to the Vulture Sporting Goods Company data in Short Exercise. At March 31, 2010, Vulture Sporting

Question:

Refer to the Vulture Sporting Goods Company data in Short Exercise. At March 31, 2010, Vulture Sporting Goods Company’s current ratio was 1.35 and their debt ratio was 0.62. Compute Vultures
(a) Current ratio
(b) Debt ratio after each of the following transactions (all amounts in thousands, as in the Vulture financial statements):
1. Vulture earned revenue of $8,000 on account.
2. Vulture paid off of $8,000.
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...