Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need working captial, current ratio, and acid-test ratio. Also need increase, decrease or none for all the drop down boxes. Thank you!! Denna Company's working

Need working captial, current ratio, and acid-test ratio. Also need increase, decrease or none for all the drop down boxes. Thank you!!

image text in transcribedimage text in transcribed

Denna Company's working capital accounts at the beginning of the year follow Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Accounts payable Notes due within one year Accrued liabilities $ 72,000 $ 25,000 S 354,800 $ 465,200 $ 9,400 S 203,600 $ 104,000 $ 61,800 During the year, Denna Company completed the following transactions X. Paid a cash dividend previously declared, $32,000 a. Issued additional shares of common stock for cash, $204,000 b. Sold inventory costing $71,600 for $102,000, on account. C. Wrote off uncollectible accounts in the amount of $10,800, reducing the accounts receivable balance accordingly d. Declared a cash dividend, $32,000 e. Paid accounts payable, $103,200 f. Borrowed cash on a short-term note with the bank, $63,000 g. Sold inventory costing $15,630 for $10,420 cash h. Purchased inventory on account, $51,500 i. Paid off all short-term notes due, $167,000 j. Purchased equipment for cash, $76,600 k. Sold marketable securities costing $15,000 for cash, $12,500 l. Collected cash on accounts receivable, $82,200

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost And Management Audit

Authors: Dr Veena Soni

1st Edition

6202551992, 978-6202551991

More Books

Students also viewed these Accounting questions