Question
Arts & Sciences Corporation, had current liabilities at April 30 of $69,000. The firm's current ratio at that date was 1.7. Required: a. Calculate the
| Arts & Sciences Corporation, had current liabilities at April 30 of $69,000. The firm's current ratio at that date was 1.7. |
| Required: | |
| a. | Calculate the firm's current assets and working capital at April 30. |
| current assets: working capital: |
| b. | Assume that management paid $13,200 of accounts payable on April 29. Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made.(Round your "current ratio" to 2 decimal places. (e.g., 32.16)) |
| current ratio: working capital: |
| c. | Indicate the changes, if any, to working capital and the current ratio that would be caused by the April 29 payment. |
| working capital: current ratio: |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fundamentals of Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
7th edition
1259722635, 978-1259722639
