FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
9th Edition
ISBN: 9781119595724
Author: Kimmel
Publisher: WILEY C
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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
Gojo Company had the following transactions involving current assets and current liabilities
during February 2021.
Feb 3 Collected accounts receivable of $15,000.
7 Purchased equipment for $23,000 cash.
14 Paid accounts payable of S12,000.
18 Declared cash dividends, $4,000. The dividend will be paid next month.
Additional information:
As of 1* February 2020, current assets were $120,000 and current liabilities were $40,000.
Required:
1) Compute the current ratio as of the beginning of the month.
2) Compute the current ratio after evaluating the effect of each transaction (Consider the
effect of each transaction continuously). Did Gojo Company's current ratio improve,
deteriorate, or hold steady after each transaction? Show detailed workings to support your
answer.
Vaughn Manufacturing reported the following selected information at March 31.
2017
Total current assets
$232,500
Total assets
435,500
Total current liabilities
288,500
Total liabilities
374,500
Net cash provided by operating activities
64,900
Calculate the current ratio, the debt to assets ratio, and free cash flow for March 31, 2017. The company paid dividends of $11,000 and spent $25,000 on capital expenditures. (Round current ratio
and debt to assets ratio to 2 decimal places, e.g. 15.25. If answer is negative enter it with a negative sign preceding the number e.g. -15,000 or in parentheses e.g. (15,000).)
Current ratio
:1
Debt to assets
%
Free cash flow
2$
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