Question
2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate
2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round to one decimal place.
a. Sold marketable securities at no gain or loss, $70,000.
b. Paid accounts payable, $125,000.
c. Purchased goods on account, $110,000.
d. Paid notes payable, $100,000.
e. Declared a cash dividend, $150,000.
f. Declared a common stock dividend on common stock, $50,000.
g. Borrowed cash from bank on a long-term note, $225,000.
h. Received cash on account, $125,000.
i. Issued additional shares of stock for cash, $600,000.
j. Paid cash for prepaid expenses, $10,000.
TransactionWorking CapitalCurrent RatioQuick Ratioa.$fill in the blank 4fill in the blank 5fill in the blank 6b.fill in the blank 7fill in the blank 8fill in the blank 9c.fill in the blank 10fill in the blank 11fill in the blank 12d.fill in the blank 13fill in the blank 14fill in the blank 15e.fill in the blank 16fill in the blank 17fill in the blank 18f.fill in the blank 19fill in the blank 20fill in the blank 21g.fill in the blank 22fill in the blank 23fill in the blank 24h.fill in the blank 25fill in the blank 26fill in the blank 27i.fill in the blank 28fill in the blank 29fill in the blank 30j.fill in the blank 31fill in the blank 32fill in the blank 33
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