Effect of Transactions on Current Position Analysis Data pertaining to the current position of Newlan Company are as follows: $ 30,000 Temporary Investments Accounts and notes receivable (net) Inventories 160,000 235.000 190,000 Prepaid expenses 10.000 Accounts payable 158,000 Notes payable short-term) Acered expenses 80,000 12,000 Instructions: 1. Compute(a) the worlding capital, (b) the current ratio, and (c) the quick ratio Round the current ratio and the quick ratio to one decimal place Working capital Current ratio Quick ratio 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns Considerath transaction separately and assume that only that transaction affects the data given above. Format working capital as whole dollars. Round the current ratio and the quick ratio to one decimal place. Transaction Working Capital Current Ratio Quick Ratio Sold temporary Investments for cash at no gain or loss, 550,000 b. Paid accounts payable, 540,000 c. Purchased goods on account, $75,000 Previous Accounts payable 158,000 Notes payable (short-term) 30.000 Accrued expenses 12,000 Instructions: 1. Compute(a) the working capital, (b) the current ratio, and (c) the quick ratio. Round the current ratio and the quick ratio to one'decimal place. Working capital Current ratio Quick ratio 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions, and record the results in the appropriate columns Consider each transaction separately and assume that only that transaction affects the data given above. Format working capital as whole dollars. Round the current ratio and the quick ratio to one decimal place. Transaction Working Capital Current Ratio Quick Ratio Sold temporary investments for cash at no gain or loss, 550,000 b. Pald accounts payable, $40,000 Purchased goods on account, 575,000 d. Paidots payable, 530,000 .. Declared a cash dividend, 515,000 Declared a stock dividend on common stock, 524,000 9. Borrowed cash from bank on a long-term note, 5150,000 Received cash on account, $72,000. Issued additional shares of stock for cash, $300,000 J. Paid cash for prepaid expenses, $10,000 Previous Next