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Halifax Fisheries Inc. began the month of March with $769,000 of current assets, a current ratio of 2.5 to 1, and a quick ratio of
Halifax Fisheries Inc. began the month of March with $769,000 of current assets, a current ratio of 2.5 to 1, and a quick ratio of 1.1 to 1. During the month, it completed the following transactions:
Mar. | 6 | Bought $86,900 of merchandise on account. (The company uses a perpetual inventory system.) | ||
11 | Sold merchandise that cost 71,800 for $122,500. | |||
15 | Collected a 30,900 account receivable. | |||
17 | Paid a $32,900 account payable. | |||
19 | Wrote off a $14,900 bad debt against Allowance for Doubtful Accounts. | |||
24 | Declared a $2.20 per share cash dividend on the 41,900 outstanding common shares. | |||
28 | Paid the dividend declared on March 24. | |||
29 | Borrowed $94,500 by giving the bank a 30-day, 18% note. | |||
30 | Borrowed $119,000 by signing a long-term secured note. | |||
31 | Used the $213,500 proceeds of the notes to buy additional machinery. |
Required: Prepare a schedule showing Halifax Fisheries Inc.s current ratio, quick ratio, and working capital after each of the transactions. (Round ratios to 2 decimal places and other final answers to nearest whole dollar.)
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