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i need the answer tq Gojo Company had the following transactions involving current assets and current liabilities during February 2021 Feb 3 Collected accounts receivable
i need the answer tq Gojo Company had the following transactions involving current assets and current liabilities during February 2021 Feb 3 Collected accounts receivable of $15,000. 7 Purchased equipment for $23,000 cash. 14 Paid accounts payable of $12,000. 18 Declared cash dividends, $4,000. The dividend will be paid next month. Additional information: As of 1" February 2020, current assets were $120,000 and current liabilities were $40,000. Required: 1) Compute the current ratio as of the beginning of the month. 2) Compute the current ratio after evaluating the effect of each transaction (Consider the effect of each transaction continuously). Did Gojo Company's current ratio improve, deteriorate, or hold steady after each transaction? Show detailed workings to support your answer (16 marks)
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