Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gwynn Incorporated had the following transactions involving current assets and current liabilities during February 2020. Feb. 3 Collected accounts receivable of $14,100. 7 Purchased equipment

Gwynn Incorporated had the following transactions involving current assets and current liabilities during February 2020.

Feb. 3 Collected accounts receivable of $14,100.
7 Purchased equipment for $27,200 cash.
11 Paid $2,200 for a 1-year insurance policy.
14 Paid accounts payable of $11,300.
18 Declared cash dividends, $5,200.

Additional information:

As of February 1, 2020, current assets were $132,340, and current liabilities were $50,900.

Compute the current ratio as of the beginning of the month and after each transaction. (Round answers to 2 decimal places, e.g. 1.67.)

Current ratio

February 1 enter the current ratio rounded to 2 decimal places :1
February 3 enter the current ratio rounded to 2 decimal places :1
February 7 enter the current ratio rounded to 2 decimal places :1
February 11 enter the current ratio rounded to 2 decimal places :1
February 14 enter the current ratio rounded to 2 decimal places :1
February 18 enter the current ratio rounded to 2 decimal places :1

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_2

Step: 3

blur-text-image_3

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

The Well Church Book A Practical Guide To Mission Audit

Authors: John Finney

1st Edition

0862015499, 978-0862015497

More Books

Students also viewed these Accounting questions