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Keener Incorporated had the following transactions occur involving current assets and current liabilities during February 2017. Feb. 3 Accounts receivable of exist14, 900 are collected
Keener Incorporated had the following transactions occur involving current assets and current liabilities during February 2017. Feb. 3 Accounts receivable of exist14, 900 are collected Equipment 7 is purchased for exist27, 400 cash. 11 Paid exist3, 800 for a 1-year insurance policy. 14 Accounts payable of exist12, 800 are paid. 18 Cash dividends of exist4, 200 are declared. Additional information: 1. As of February 1, 2017, current assets were exist134, 200, and current liabilities were exist50, 100. 2. As of February 1, 2017, current assets included exist14, 600 of inventory and exist1, 600 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.)
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