FC Challenge Problem: Calculing the effect of transactions on the current ratio LO and key formulas to compute rent ratios the worksheets Clausen Company is nearing the end of its fiscal year, and the Accounting Department has estimated that the current ratio for the current year will be 1.5, with estimated current assets of $150,000 and estimated current liabilities of $100,000. The company wants to increase the current ratio to at least 2.0 by the end of the period. It has the following options: a. Borrow $50,000 by signing a short-term note payable, due in six months. b. Borrow $50,000 by signing a long-term note payable, due in 18 months. c. Sell $50,000 of common stock. d. Pay off $25,000 of accounts payable with cash. e. Replace $25,000 of accounts payable with a long-term note payable, due in 24 months. Instructions: 1. For each option above, calculate the new totals for the current assets and the current liabilities, and calculate the new current ratio. 2. Identify which options would achieve the company's goal of a current ratio of 2.0. High Sch x NGI Sync X NGLSync X MindTap x MindTap x Ghow to fo K Precise K 4 Schoo K ang.cengage.com/staticb/ui/evo/index.html?elSBN 9781337799645&id-989278683&snapshotid-20775608 CENGAGE MINDTAP Challenge Problem 13-C Graded Assignment 0 Q Search this course Cars x a Baut Subest 13-C CHALLENGE PROBLEM Calculating the effect of transactions on the current ratio Click here to view the instructions in a separate window. If these instructions block your workspace, you can adjust your display. Without closing the Instructions window, navigate to the app dock to the right. Click on the "Full Book" app and your screen will automatically readjunt to include a horizontal and vertical scroll bar, facilitating navigation within the activity. Note: As a reminder, to ensure correct grading it is important to enter calculations in the order that they are presented in the instructions. Note: Round the new totals for the current assets and the current liabilities to the nearest hundredths. Note: If the value to enter is zero, enter "0" instead of leaving the cell blank. 1. a. Current assets $150,000.00 Current liabilities $100,000.00 Current ratio Current assets Current liabilities Type here to search $1.50 $150,000.00 $100,000.00 CENGAGE MINDTAP Challenge Problem 13-C Graded Assignment Current assets $150,000.00 Current abilities $100,000.00 Current ratio $1.50 Current assets $150,000.00 Current liabilities $100,000.00 Current ratio $1.50 Current assets $150,000.00 Current liabilities Current ratio Type here to search $100,000.00 $1.50 O 13 E 9 P Q Search this course B Reset Submit 40 Prt Scn Home End P d. Graded Assignment LUTCH HOUMUC Current ratio $1.50 Current assets $150,000.00 Current liabilities $100,000.00 Current ratio $1.50 Current assets $150,000.00 Current liabilities Current ratio $100,000.00 $1.50 2. Identify which options would achieve the company's goal of a current ratio of 2.0. Options will achieve the company's goal of a current ratio of 2.0. Type here to search B