Question
Metlock, Inc. had the following transactions involving current assets and current liabilities during February 2022. Feb. 3 Collected accounts receivable of $10,300. 7 Purchased equipment
Metlock, Inc. had the following transactions involving current assets and current liabilities during February 2022.
| Feb. 3 | Collected accounts receivable of $10,300. | |
| 7 | Purchased equipment for $34,300 cash. | |
| 11 | Paid $3,500 for a 1-year insurance policy. | |
| 14 | Paid accounts payable of $14,400. | |
| 18 | Declared cash dividends, $7,000. |
Additional information: As of February 1, 2022, current assets were $128,800 and current liabilities were $32,600. Compute the current ratio as of the beginning of the month and after each transaction. (Round all answers to 2 decimal places, e.g. 1.83 : 1.)
| Current ratio as of February 1, 2014 |
| :1 | |
| Feb. 3 |
| :1 | |
| Feb. 7 |
| :1 | |
| Feb. 11 |
| :1 | |
| Feb. 14 |
| :1 | |
| Feb. 18 |
| :1 |
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Auditing A Guide To Principles And Practice
Authors: J H Crowhurst
1st Edition
0304309052, 978-0304309054
