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At December 31,2024, Elizabeth Brown Corporation reported current assets of $384,444 and current liabilities of $212,400. The following items may have been recorded incorrectly. Brown
At December 31,2024, Elizabeth Brown Corporation reported current assets of $384,444 and current liabilities of $212,400. The following items may have been recorded incorrectly. Brown uses a perpetual imventory system. 1. Goods purchased costing $21,860 were shipped fo.b. shipping point by a supplier on December 28. Brown received and recorded the invoice on December 29,2024, but the goods were not included in Brown's inventory because they were not. received until January 4,2025. 2. Goods purchased costing $14,970 were shipped fo.b. destination by a supplier on December 26. Brown received and recorded the invoice on December 31, but the goods were not included in Brown's 2024 inventory because they were not recelved until January 2,2025. 3. Goods held on consignment from Claudia Kishi Company were included in Brown's December 31, 2024, inventory at $13,130. Your answer is correct. Compute the current ratio based on Brown's balance sheet. (Round ratio to 2 decimal places, es. 2.31:1.) The current ratio :1 Your answer is incorrect. Recompute the current ratio after corrections are made. (Round ratio to 2 decimal places, eg. 2.31:1.) The current ratio :1
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