Effect of Transactions on Current Position Analysis Data pertaining to the current position of Lucroy Industries Inc. follow: Cash $435,000 Marketable securities 167,500 Accounts and notes receivable (net) 315,000 Inventories 700,000 Prepaid expenses 44,000 Accounts payable 180,000 Notes payable (short-term) 235,000 Accrued expenses 325,000 Required: 1. Compute (a) the working capital, (b) the current ratio, and (c) the quick ratio. Round ratios to one decimal place. a. Working capital $fill in the blank b. Current ratio fill in the blank c. Quick ratio fill in the blank 2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place. Transaction Working Capital Current Ratio Quick Ratio a. Sold marketable securities at no gain or loss, $80,000. b. Paid accounts payable, $105,000. c. Purchased goods on account, $100,000. d. Paid notes payable, $105,000. e. Declared a cash dividend, $155,000. f. Declared a common stock dividend on common stock, $60,000. g. Borrowed cash from bank on a long-term note, $225,000. h. Received cash on account, $135,000. i. Issued additional shares of stock for cash, $640,000. j. Paid cash for prepaid expenses, $7,000.
Effect of Transactions on Current Position Analysis
Data pertaining to the current position of Lucroy Industries Inc. follow:
Cash $435,000
Marketable securities 167,500
Accounts and notes receivable (net) 315,000
Inventories 700,000
Prepaid expenses 44,000
Accounts payable 180,000
Notes payable (short-term) 235,000
Accrued expenses 325,000
Required:
1. Compute (a) the
a. Working capital $fill in the blank
b. Current ratio fill in the blank
c. Quick ratio fill in the blank
2. Compute the working capital, the current ratio, and the quick ratio after each of the following transactions and record the results in the appropriate columns. Consider each transaction separately and assume that only that transaction affects the data given. Round ratios to one decimal place.
| Transaction | Working Capital | Current Ratio | Quick Ratio |
a. Sold marketable securities at no gain or loss, $80,000.
b. Paid accounts payable, $105,000.
c. Purchased goods on account, $100,000.
d. Paid notes payable, $105,000.
e. Declared a cash dividend, $155,000.
f. Declared a common stock dividend on common stock, $60,000.
g. Borrowed cash from bank on a long-term note, $225,000.
h. Received cash on account, $135,000.
i. Issued additional shares of stock for cash, $640,000.
j. Paid cash for prepaid expenses, $7,000.
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