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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 $14, 200 are collected.
Keener Incorporated had the following transactions occur involving current assets and current liabilities during February 2017. Feb. 3 Accounts receivable of $14, 200 are collected. 7 Equipment is purchased for $28, 400 cash. 11 Paid $2,000 for a 1-year insurance policy. 14 Accounts payable of $13,000 are paid. 18 Cash dividends of $5, 600 are declared. Additional information: As of February 1, 2017, current assets were $130, 600, and current liabilities were $49, 800 As of February 1, 2017, current assets included $14, 100 of inventory and $1, 400 of prepaid expenses. Compute the current ratio as of the beginning of the month and after each transaction. 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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