Working capital and current ratio On October 31, 2006, Fordham Companys total current assets were $50,000 and

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Working capital and current ratio On October 31, 2006, Fordham Company’s total current assets were $50,000 and its total current liabilities were $20,000. On November 1, 2006, Fordham purchased marketable securities for $10,000 cash.

Required

a. Compute Fordham’s working capital before and after the securities purchase.

b. Compute Fordham’s current ratio before and after the securities purchase.

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Fundamental Managerial Accounting Concepts

ISBN: 9780073526799

4th Edition

Authors: Thomas Edmonds, Bor-Yi Tsay, Philip Olds

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