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Current assets for JC Inc. totalled $95,996, and the current ratio was 2.33. Assume that the following transactions were completed: (1) Purchased merchandise for $4,300
Current assets for JC Inc. totalled $95,996, and the current ratio was 2.33. Assume that the following transactions were completed: (1) Purchased merchandise for $4,300 on short-term credit. (2) Purchased a delivery truck for $25,000-paid $9,100 cash and signed a two-year interest-bearing note for the balance. Required: 1. Determine without computations if the current ratio will increase, decrease, or remain unchanged after each transaction. 2. Compute the current ratio after each transaction. (Round the final answers to 2 decimal places.)
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