Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries Inc. follow: Required: 1. Compute (a) the working capital,

image text in transcribedimage text in transcribed

Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries Inc. follow: Required: 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. 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. Round ratios to one decimal place. Transaction Working Capital Current Ratio Quick Ratio a. Sold marketable securities at no gain or loss, $65,000. b. Paid accounts payable, $120,000. c. Purchased goods on account, $125,000. d. Paid notes payable, $105,000. e. Declared a cash dividend, $155,000. f. Declared a common stock dividend on common stock, $40,000. g. Borrowed cash from bank on a long-term note, $220,000. h. Received cash on account, $140,000. i. Issued additional shares of stock for cash, $595,000. j. Paid cash for prepaid expenses, $15,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

IT Audit Control And Security

Authors: Robert R. Moeller

1st Edition

0471406767, 9780471406761

More Books

Students also viewed these Accounting questions

Question

a neglect of quality in relationship to international competitors;

Answered: 1 week ago