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E13-13 Analyzing the Impact of Selected Transactions on the Current Ratio [LO4, LO5] SportChek is Canada's largest retailer of sporting goods and sports apparel and
E13-13 Analyzing the Impact of Selected Transactions on the Current Ratio [LO4, LO5]
SportChek is Canada's largest retailer of sporting goods and sports apparel and footwear, with over 130 stores across the country. Assume one of the SportChek stores reported current assets of $81,000 and its current ratio was 1.82. Assume that the following transactions were completed:
- Paid $6,700 on accounts payable.
- Purchased a delivery truck for $6,500 cash.
- Wrote off a bad account receivable for $2,700.
- Paid previously declared dividends in the amount of $19,000.
Required:
Compute the updated current ratio.(Round your answers to 2 decimal places.)
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