Question
Skysong, Inc. had the following transactions involving current assets and current liabilities during February 2022. Feb. 3 Collected accounts receivable of $18,900. 7 Purchased equipment
Skysong, Inc. had the following transactions involving current assets and current liabilities during February 2022.
| Feb. 3 | Collected accounts receivable of $18,900. | |
| 7 | Purchased equipment for $36,800 cash. | |
| 11 | Paid $3,500 for a 1-year insurance policy. | |
| 14 | Paid accounts payable of $12,400. | |
| 18 | Declared cash dividends, $8,500. |
Additional information: As of February 1, 2022, current assets were $134,874 and current liabilities were $35,400. Compute the current ratio as of the beginning of the month and after each transaction. (Round answers to 2 decimal places, e.g. 1.83.)
| Current ratio as of February 1, 2022 | enter current ratio as of February 1 | :1 | |
|---|---|---|---|
| Feb. 3 | enter the current ratio as of February 3 | :1 | |
| Feb. 7 | enter the current ratio as of February 7 | :1 | |
| Feb. 11 | enter the current ratio as of February 11 | :1 | |
| Feb. 14 | enter the current ratio as of February 14 | :1 | |
| Feb. 18 | enter the current ratio as of February 18 | :1 |
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Managerial Accounting Decision Making and Motivating Performance
Authors: Srikant M. Datar, Madhav V. Rajan
1st edition
132816245, 9780132816243, 978-0137024872
