psyable 1000 6,000 s Paae ,500 Treasury Stocks mpoy 2,200 2,5 Account Ouisk Asse
ID: 2596429 • Letter: P
Question
psyable 1000 6,000 s Paae ,500 Treasury Stocks mpoy 2,200 2,5 Account Ouisk Assets Current Lisviitie amount ccout MOURE Total Total 2. Compute the working capital, current ratio, and the quick ratio based on the information sove ed reendt results in the appropriate columns. Round to the nearest onsdecimal ints 3. Consider each transaction separately, and assume that only that transaction affects the data given a.. Sold furniture for cash, $3,000 b. Paid taxes payable $2,000. C... Purchased treasury stocks for cash $2,500 d. Declared Cash dividends of $4,000 Record the answers in the appropriate columns. Current assets quick assets current liabilities working capital currens radio Qick rat 2. 3a. 3b 3c. 3d.Explanation / Answer
CURRENT ASSETS
QUICK ASSETS
CURRENT LIABILITIES
ACCOUNT
AMOUNT
ACCOUNT
AMOUNT
ACCOUNT
AMOUNT
INVENTORY
8000
ACC PAY
3000
TEMP INVESTMENTS
5000
TEMP INVESTMENTS
5000
ACCRUED EXP
2200
OFFICE SUPPLIES
1000
OFFICE SUPPLIES
1000
TAX PAYABLE
2000
ACC REC
6000
ACC REC
6000
PREPAYMENTS
2500
PREPAYMENTS
2500
CASH
10000
CASH
10000
TOTAL
24500
LESS CL
-7200
TOTAL
32500
TOTAL
17300
TOTAL
7200
CURRENT ASSETS
QUICK ASSETS
CURRENT LIABILITIES
WORKING CAPITAL
CURRENT
RATIO
QUICK RATIO
2)32500
24500
7200
25300
32500/7200= 4.5
CA-INV/CL= 24500/7200=3.4
3a) 35,500
+20300
7200
28300
35500/7200
4.9
27500/7200
3.8
3b)30,500
22500
5200
25300
30500/5200
5.9
22500/5200
4.3
3c) 30000
22000
7200
22800
30000/7200
4.17
22000/7200
3.05
3d) 28500
20500
7200
21300
28500/7200
3.96
20500/7200
2.85
CURRENT ASSETS
QUICK ASSETS
CURRENT LIABILITIES
ACCOUNT
AMOUNT
ACCOUNT
AMOUNT
ACCOUNT
AMOUNT
INVENTORY
8000
ACC PAY
3000
TEMP INVESTMENTS
5000
TEMP INVESTMENTS
5000
ACCRUED EXP
2200
OFFICE SUPPLIES
1000
OFFICE SUPPLIES
1000
TAX PAYABLE
2000
ACC REC
6000
ACC REC
6000
PREPAYMENTS
2500
PREPAYMENTS
2500
CASH
10000
CASH
10000
TOTAL
24500
LESS CL
-7200
TOTAL
32500
TOTAL
17300
TOTAL
7200
CURRENT ASSETS
QUICK ASSETS
CURRENT LIABILITIES
WORKING CAPITAL
CURRENT
RATIO
QUICK RATIO
2)32500
24500
7200
25300
32500/7200= 4.5
CA-INV/CL= 24500/7200=3.4
3a) 35,500
+20300
7200
28300
35500/7200
4.9
27500/7200
3.8
3b)30,500
22500
5200
25300
30500/5200
5.9
22500/5200
4.3
3c) 30000
22000
7200
22800
30000/7200
4.17
22000/7200
3.05
3d) 28500
20500
7200
21300
28500/7200
3.96
20500/7200
2.85
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