Accounting for managers MBA courses

Q5.pdf

11/21/2020 Exercise 9-8

https://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni 1/1

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Print by: SHADI SHADMAN Acct 621 Fall 2020 S21 / Assignment 1 for Acct621 Fall 2020

*Exercise 9-8 Teal Mountain Inc. had the following transactions involving current assets and current liabilities during February 2017.

Feb. 3 Collected accounts receivable of $13,100. 7 Purchased equipment for $39,000 cash.

11 Paid $2,100 for a 1-year insurance policy. 14 Paid accounts payable of $13,200. 18 Declared cash dividends, $8,900.

Additional information:

As of February 1, 2017, current assets were $128,800 and current liabilities were $31,900.

Compute the current ratio as of the beginning of the month and after each transaction. (Round all answers to 2 decimal places, e.g. 1.83 : 1.)

Current ratio as of

Feb. 1, 2017 :1

Feb. 3 :1

Feb. 7 :1

Feb. 11 :1

Feb. 14 :1

Feb. 18 :1