A company began the month with current assets $200k and $80k of current liabilities.

Required:

Review the following transactions. Indicate the effect they have on the corporations current ratio by placing an X in the appropriate column. Treat each transaction independently.

		Increase	Decrease	No Effect
a.	Paid $10,000 of accounts payable with cash.
b.	Declared a $1 per share cash dividend on the 10,000 common shares that were outstanding.
c.	Paid a $10,000 dividend that was declared one month ago.
d.	Borrowed $10,000 cash from a bank as a 60-day, 10% loan.
e.	Borrowed $25,000 cash from a bank as a 10-year mortgage on the plant.
f.	Repurchased $10,000 of common shares for $10,000 cash.