Question
A company has current assets that total $506,000, a current ratio of 2.30, and uses the perpetual inventory method. Assume that the following transactions are
A company has current assets that total $506,000, a current ratio of 2.30, and uses the perpetual inventory method. Assume that the following transactions are then completed: (1) sold $13,300 in merchandise on short-term credit for $17,600, (2) declared but did not pay dividends of $48,000, (3) paid prepaid rent in the amount of $13,200, (4) paid previously declared dividends in the amount of $48,000, (5) collected an account receivable in the amount of $11,700, and (6) reclassified $37,000 of long-term debt as a current liability.
Required:
Compute the updated current ratio after each transaction. (Round your answers to 2 decimal places.)
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