Current assets totaled $54,000, and the current ratio was 1.8. Assume that the following transactions were completed:

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Current assets totaled $54,000, and the current ratio was 1.8. Assume that the following transactions were completed: (1) purchased merchandise for $6,000 on short-term credit and (2) purchased a delivery truck for $10,000, paid $1,000 cash, and signed a two-year interest-bearing note for the balance.

Required:

Compute the cumulative current ratio after each transaction.

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Financial Accounting

ISBN: 9780070891739

1st Canadian Edition

Authors: Robert Libby

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