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Assume current assets totaled $57,000 and the current ratio was 1.2 before the following independent transactions: (1) Purchased merchandise for $6,000 on short-term credit. (2)
Assume current assets totaled $57,000 and the current ratio was 1.2 before the following independent transactions:
(1) Purchased merchandise for $6,000 on short-term credit.
(2) Purchased a delivery truck for $29,000. paid $3,000 cash and signed a two-year interest-bearing note for the balance.
Required:
Compute the current ratio after each transaction.
Transaction | current ratio |
1) | ? |
2) | ? |
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