EDWARD ALLEN INTERIORS, INC. Trial Balance December 31, 2019 Account Title Debit Credit Cash $ 19 Accounts Receivable 10 110 190 Notes Receivable (short-term) Inventory Prepaid Rent Equipment Software 24 443 45 109 23 Accounts Payable Salaries and Wages Payable Notes Payable (short-term) Notes Payable (long-term) 13 60 Common Stock 396 Retained Earnings 20 Total $ 731 $ 731 PA2-3 Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the Balance Sheet [LO 2-2, LO 2-3, LO 2-4, LO 2-5) (General Ledger) Edward Allen Interiors Inc. is a leading manufacturer and retailer of home furnishings in the United States and abroad. The following is adapted from Edward Allen's September 30, 2019, trial balance. (The amounts shown represent millions of dollars.) Accounts Payable Accounts Receivable Cash Common Stock Equipment Inventory Notes Payable (long-term) Notes Payable (short-term) Prepaid Rent Retained Earnings Salaries and Wages Payable Software $109 10 79 376 273 160 60 3 24 20 23 45 Assume that the following events occurred in the following quarter. a. Paid $30 cash for additional inventory. b. Issued additional shares of common stock for $20 in cash. C. Purchased equipment for $170; paid $60 in cash and signed a note to pay the remaining $110 in two years. d. Signed a short-term note to borrow $10 cash. Assets Cash 19 Accounts Receivable 10 tt ta 190 Inventory Prepaid Rent 24 X $ 243 0 X 0 Liabilities Notes Payable (short-term) 13 Accounts Receivable 10 Accounts Payable 109 Total Current Liabilities 132 0 Stockholders' Equity Common Stock 396 Retained Earnings 20 416 X $ 416 Calculate Edward Allen's current ratio at September 30, 2019, prior to the transactions listed above. (Round your answer to 2 decimal places.) Current Ratio Based on the above calculation and analysis of TripAdvisor's current ratio 2.15, indicate which company is in a better position to pay liabilities. Edward Allen TripAdvisor Use your response to part 6 to calculate Edward Allen's current ratio after the transactions listed in (a)-(e). (Round your answer to 2 decimal places.) Current ratio after the transactions (a)-(e) Based on this calculation and the calculation in part 1, indicate whether the above transactions increase or decrease the company's ability to pay current liabilities. O Increased Decreased