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6. 2.00 points E13-13 Analyzing the Impact of Selected Transactions on the Current Ratio [LO 13-4, LO 13-5] The Sports Authority, Inc. is a private
6. 2.00 points E13-13 Analyzing the Impact of Selected Transactions on the Current Ratio [LO 13-4, LO 13-5] The Sports Authority, Inc. is a private full-line sporting goods retailer. Assume one of the Sports Authority stores reported current assets of $87,850 and its current ratio was 1.75, and then completed the following transactions: (1) paid $6,100 on accounts payable, (2) purchased a delivery truck for $11,000 cash, (3) wrote off a bad account receivable for $1,800, and (4) paid previously declared dividends in the amount of $23,500. Required Compute the updated current ratio after each transaction, by showing the cumulative effects of the transactions in the following table. (Round your answers to 2 decimal places.) Current Ratio 2.16 Transaction (1) Transaction (2) Transaction (3) Transaction (4)
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