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The balance sheet of Mister Ribs Restaurant reports current assets of $75,000 and current liabilities of $37,500. Required: Calculate the current ratio of Mister
The balance sheet of Mister Ribs Restaurant reports current assets of $75,000 and current liabilities of $37,500. Required: Calculate the current ratio of Mister Ribs Restaurant and determine whether it will increase or decrease as a result of the following transactions. Consider each item, (a) to (d), independent of the others. a. Paid $4,500 cash for a new oven. b. Received a $4,500 cash contribution from an investor for the company's common stock. c. Borrowed $27,000 cash from a bank, issuing a note that must be repaid in three years. d. Purchased $1,800 of napkins, paper cups, and other disposable supplies on account Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Calculate the current ratio and determine whether it will increase, decrease, or remain the same. Paid $4,500 cash for a new oven. Numerator Denominator Current Ratio Effect Required A Required B >
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