Working capital and current ratio On October 31, 2006, Fordham Companys total current assets were $50,000 and
Question:
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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Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 9780073526799
4th Edition
Authors: Thomas Edmonds, Bor-Yi Tsay, Philip Olds
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