Ivanhoe Incorporated had the following transactions involving current assets and current liabilities during February 2027. Feb. 3 Collected accounts receivable of $17,600. 7 Purchased equipment for $28,200 cash. 11 Paid $4,700 for a 1-year insurance policy. 14 Paid accounts payable of $11,400. 18 Declared cash dividends of $8,200. Additional information: As of February 1, 2027, current assets were $131,445 and current liabilities were $34,500. 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, 2027 :1 Feb. 3 Feb. 7 Feb. 11 :1 :1 :1
Ivanhoe Incorporated had the following transactions involving current assets and current liabilities during February 2027. Feb. 3 Collected accounts receivable of $17,600. 7 Purchased equipment for $28,200 cash. 11 Paid $4,700 for a 1-year insurance policy. 14 Paid accounts payable of $11,400. 18 Declared cash dividends of $8,200. Additional information: As of February 1, 2027, current assets were $131,445 and current liabilities were $34,500. 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, 2027 :1 Feb. 3 Feb. 7 Feb. 11 :1 :1 :1
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 25BEB
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