Effect of transactions on current position analysis Data pertaining to the current position of Newlan Company are as follows: Instructions List the following captions on a sheet of paper: . 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 above. Round to one decimal place. a.Sold temporary investments for cash at no gain or loss, $50,000. b. Paid accounts payable,$40,000. c.Purchased goods on account, $75,000. d. Paid notes payable,$30,000. e. Declared a cash dividend, $15,000. f.Declared a stock dividend on common stock,$24,000. g. Borrowed cash from bank on a long-term note, $150,000. h. Received cash on account,$72,000. i.Issued additional shares of stock for cash, $300,000. j.Paid cash for prepaid expenses.$10,000.

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
Publisher: Cengage Learning
ISBN: 9781305961883

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Chapter 9, Problem 9.3.2P
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