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Bennis Incorporated had the following transactions occur involving current assets and current liabilities during February 2014. Feb. 3 Accounts receivable of $14, 170 are collected
Bennis Incorporated had the following transactions occur involving current assets and current liabilities during February 2014. Feb. 3 Accounts receivable of $14, 170 are collected 7 Equipment is purchased for $27, 090 cash. 11 Paid $3, 270 for a 3-year insurance policy. 14 Accounts payable of $12, 570 are paid. 18 Cash dividends of $4, 630 are declared. Additional information: As of February 1, 2014, current assets were $142, 230, and current liabilities were $50, 250 As of February 1, 2014, current assets included $10, 250 of inventory and $5, 020 of prepaid expenses. Compute the current ratio as of the beginning of the month and after each transaction. Compute the acid-test ratio as of the beginning of the month and after each transaction. (Round all answers to 1 decimal place, e.g. 1.6.)
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