Effect of transactions on working capital and current ratio Evans, Inc., had current liabilities at November 30
Question:
Effect of transactions on working capital and current ratio Evans, Inc., had current liabilities at November 30 of $137,400. The firm's current ratio at that date was 1.8. Required:
a. Calculate the firm's current assets and working capital at November 30.
b. Assume that management paid $30,600 of accounts payable on November 29. Calculate the current ratio and working capital at November 30 as if the November 29 payment had not been made. Round your current ratio answer to two decimal places. Explain the changes, if any, to working capital and the current ratio that would be caused by the November 29 payment.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Accounting What The Numbers Mean
ISBN: 9780073379418
8th Edition
Authors: David Marshall, Wayne McManus, Daniel Viele
Question Posted: