Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 14, Problem 14.6E
Keener Incorporated had the following transactions occur involving current assets and current liabilities during Februar 2017.
| Feb. | 3 | |
| 7 | Equipment is purchased for $28,000 cash. | |
| 11 | Paid $3,000 for a 3-year insurance policy. | |
| 14 | Accounts payable of $12,000 are paid. | |
| 18 | Cash dividends of $5,000 are declared. |
Additional information:
1. As of February 1, 2017, current assets were $ 110,000. and current liabilities were $50,000.
2. As of February 1, 2017, current assets included $15,000 of inventory and $2,000 of prepaid expenses.
Instructions
(a) Compute the
(b) Compute the acid-test ratio as of the beginning of the month and after each transaction.
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Sage Hill Inc. had the following transactions involving current assets and current liabilities during February 2017.
Feb. 3
Collected accounts receivable of $18,600.
7
Purchased equipment for $33,200 cash.
11
Paid $2,000 for a 1-year insurance policy.
14
Paid accounts payable of $14,600.
18
Declared cash dividends, $8,200.
Additional information:As of February 1, 2017, current assets were $132,700 and current liabilities were $34,600.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
Skysong, Inc. had the following transactions involving current assets and current liabilities during February 2019.
Feb. 3
Collected accounts receivable of $18,900.
7
Purchased equipment for $36,800 cash.
11
Paid $3,500 for a 1-year insurance policy.
14
Paid accounts payable of $12,400.
18
Declared cash dividends, $8,500.
Additional information:As of February 1, 2019, current assets were $135,000 and current liabilities were $35,400.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 February 1, 2019
enter current ratio
:1
Feb. 3
enter the current ratio as of February 3
:1
Feb. 7
enter the current ratio as of February 7
:1
Feb. 11
enter the current ratio as of February 11
:1
Feb. 14
enter the current ratio as of February 14
:1
Feb. 18
enter the current ratio as of February 18
:1
Windsor, Inc. had the following transactions involving current assets and current liabilities during February 2022.
Feb. 3
Collected accounts receivable of $17,100.
7
Purchased equipment for $36,200 cash.
11
Paid $5,500 for a 1-year insurance policy.
14
Paid accounts payable of $13,400.
18
Declared cash dividends, $6,400.
Additional information:As of February 1, 2022, current assets were $133,940 and current liabilities were $36,200.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,
2022
Enter the current ratio
:1
3
Enter the current ratio
:1
7
Enter the current ratio
:1
11
Enter the current ratio
:1
14
Enter the current ratio
:1
18
Enter the current ratio
:1
Chapter 14 Solutions
Managerial Accounting: Tools for Business Decision Making
Ch. 14 - (a) Jose Ramirez believes that the analysis of...Ch. 14 - (a) Distinguish among the following bases of...Ch. 14 - Prob. 3QCh. 14 - Prob. 4QCh. 14 - Prob. 5QCh. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - What do the following classes of ratios measure?...Ch. 14 - What is the difference between the current ratio...Ch. 14 - Hizar Company, a retail store, has an accounts...
Ch. 14 - Which ratios should be used to help answer the...Ch. 14 - The price-earnings ratio of General Motors...Ch. 14 - What is the formula for computing the payout...Ch. 14 - Holding all other factors constant, indicate...Ch. 14 - Prob. 15QCh. 14 - Prob. 16QCh. 14 - Prob. 17QCh. 14 - Prob. 18QCh. 14 - Prob. 19QCh. 14 - Why is it important to report discontinued...Ch. 14 - You are considering investing in Wingert...Ch. 14 - Prob. 22QCh. 14 - Prob. 23QCh. 14 - You recently received a letter from your Uncle...Ch. 14 - Prob. 14.2BECh. 14 - Using the following data from the comparative...Ch. 14 - Using the same data presented above in BE14-3 for...Ch. 14 - Net income was 500,000 in 2016, 450,000 in 2017,...Ch. 14 - Prob. 14.6BECh. 14 - Prob. 14.7BECh. 14 - Prob. 14.8BECh. 14 - Prob. 14.9BECh. 14 - Prob. 14.10BECh. 14 - The following data are taken from the financial...Ch. 14 - Prob. 14.12BECh. 14 - Prob. 14.13BECh. 14 - Prob. 14.14BECh. 14 - On June 30. Holloway Corporation discontinued its...Ch. 14 - Prob. 14.1DICh. 14 - Prob. 14.2DICh. 14 - In its proposed 2017 income statement. Hrabik...Ch. 14 - Financial information for Kurzen Inc. is presented...Ch. 14 - Operating data for Navarro Corporation are...Ch. 14 - The comparative condensed balance sheets of Gurley...Ch. 14 - The comparative condensed income statements of...Ch. 14 - Suppose Nordstrom, Inc., which operates department...Ch. 14 - Keener Incorporated had the following transactions...Ch. 14 - Frizell Company has the following comparative...Ch. 14 - Prob. 14.8ECh. 14 - Prob. 14.9ECh. 14 - Prob. 14.10ECh. 14 - Wiemers Corporations comparative balance sheets...Ch. 14 - Prob. 14.12ECh. 14 - Prob. 14.13ECh. 14 - Comparative statement data for Farris Company and...Ch. 14 - The comparative statements of Painter Tool Company...Ch. 14 - Prob. 14.3APCh. 14 - Financial information for Messersmith Company is...Ch. 14 - Prob. 14.5APCh. 14 - Prob. 14.6APCh. 14 - Prob. 14.7APCh. 14 - Prob. 14.8APCh. 14 - Prob. 14.9APCh. 14 - Financial Reporting Problem: Apple Inc. Your...Ch. 14 - PepsiCos financial statements are presented at...Ch. 14 - Prob. 14.3BYPCh. 14 - As the CPA for Gandara Manufacturing Inc., you...Ch. 14 - The Management Discussion and Analysis section of...Ch. 14 - Prob. 14.6BYPCh. 14 - Dave Schonhardt, president of Schonhardt...
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