Keener Incorporated had the following transactions occur involving current assets and current liabilities during February 2017. Feb. 3 Accounts receivable of $15,500 are collected. 7 Equipment is purchased for $27,700 cash. 11 Paid $3,100 for a 1-year insurance policy. 14 Accounts payable of $11,000 are paid. 18 Cash dividends of $5,300 are declared. Additional information: 1. As of February 1, 2017, current assets were $130,600, and current liabilities were $49,600. 2. As of February 1, 2017, current assets included $14,600 of inventory and $2,500 of prepaid expenses. (a) Compute the current ratio as of the beginning of the month and after each transaction. (b) Compute the acid-test ratio as of the beginning of the month and after each transaction.

Exercise 14-6 Keener Incorporated had the following transactions occur involving current assets and current liabilities during February 2017 Feb. 3 Accounts receivable of $15,500 are collected 7 11 14 18 Equipment is purchased for $27,700 cash Paid $3,100 for a 1-year insurance policy Accounts payable of $11,000 are paid Cash dividends of $5,300 are declared Additional information: 1. As of February 1, 2017, current assets were $130,600, and current liabilities were $49,600 2. As of February 1, 2017, current assets included $14,600 of inventory and $2,500 of prepaid expenses (a) Compute the current ratio as of the beginning of the month and after each transaction (b) Compute the acid-test ratio as of the beginning of the month and after each transaction. (Round answers to 1 decimal place, e.g. 1.6.) urrent rati atio February 1 February 3 February 7 February 11 February 14 February 18