Introduction To Managerial Accounting
Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Chapter 14, Problem 12E

Selected Financial Measures for Assessing Liquidity
Norsk Optronics. ALS, of Bergen, Norway, had a current ratio of 2.5 on June 3 0 of the current year. On that date, the company's assets were:
Chapter 14, Problem 12E, Selected Financial Measures for Assessing Liquidity Norsk Optronics. ALS, of Bergen, Norway, had a
Required:

1. What was the company's working capital on June 30?
2. What was the company's acid-test ratio on June 30?
3. The company paid an account payable of $40,000 immediately after June 30.
a. What effect did this transaction have on working capital? Show computations.
b. What effect did this transaction have on the current ratio? Show computations.

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Introduction To Managerial Accounting

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