Gwynn Incorporated had the following transactions involving current assets and current liabilities during February 2022. Feb. 3

Question:

Gwynn Incorporated had the following transactions involving current assets and current liabilities during February 2022.

Feb. 3 Collected accounts receivable of $15,000.

7 Purchased equipment for $23,000 cash.

11 Paid $3,000 for a 1-year insurance policy.

14 Paid accounts payable of $12,000. 18 Declared cash dividends, $4,000.

Additional information: As of February 1, 2022, current assets were $120,000 and current liabilities were $40,000.

Instructions

Compute the current ratio as of the beginning of the month and after each transaction

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... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...

Fantastic news! We've Found the answer you've been seeking!