blems (Stanc) Help Check my work mode:This shows whet is correct or incorrect fo

Question

blems (Stanc) Help Check my work mode:This shows whet is correct or incorrect for the work you have completed so for. It does not indicete completion. Accounts Payable Accounts Receivable Cash Common Stock Equipment Ieventory Notes Payable (long-term) Notes Payable (short-term) Prepaid Rent Retained Earnings Salaries and Wages Payable23 Softwarye $109 10 376 273 20 45 Assume that the following events occurred in the follouing quarter Pad S30 cash for addnonal nventory. b Issued additional shares of common stock for $20 in cash c Purchased equipment for $170. paid $60 in cash and signed a note to pay the remaining $110 in two years d Signed a short-term note to borrow $0 cash. e conducted negotiations to purchase a sawmSwhich is expected to cost 536 Required 1-a. Calculate Edward Allen's current ratio at September 30, 2016, prior to the transactions isted above (Round your answer to 2 decimal places

Explanation / Answer

current asset = Accounts receivable + cash + Inventory + prepaid rent

                 = 10+79+160+24

                   = 273

current liability= Accounts payable+note payable (short term)+ salaries and wage payable

    = 109+3+23

=135

current ratio =current asset /current liabilities

     = 273/135

        = 2.02

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