Current assets totalled ($ 54,000), and the current ratio was 1.8 . Assume that the following transactions

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Current assets totalled \(\$ 54,000\), and the current ratio was 1.8 . Assume that the following transactions were completed: (1) purchased merchandise for \(\$ 6,000\) on short-term credit and (2) purchased a delivery truck for \(\$ 20,000\)-paid \(\$ 4,000\) cash and signed a two-year interestbearing note for the balance.

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Compute the current ratio after each transaction.

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Financial Accounting

ISBN: 9780070001497

4th Canadian Edition

Authors: Patricia A. Libby, Daniel Short, George Kanaan, Maureen Libby Gowing, Robert Libby

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