Exercise 14-8 Gwynn Incorporated had the following transactions involving curren

Question

Exercise 14-8 Gwynn Incorporated had the following transactions involving current assets and current liabilities during February 2020 Feb. 3 Collected accounts receivable of $15,500 7 Purchased equipment for $27,700 cash. 11 Paid $3,100 for a 1-year insurance policy. 14 Paid accounts payable of $11,000. 18 Declared cash dividends, $5,300 Additional information: As of February 1, 2020, current assets were $128,960, and current liabilities were $49,600 Compute the current ratio as of the beginning of the month and after each transaction. (Round answers to 2 decimal places, e.g. 1.67.) Current ratio February 1 February 3 February 7 February 11 February 14 February 18

Explanation / Answer

February 1 = 128,960 / 49,600 = 2.6

February 3 = 128,960 / 49,600 = 2.6

February 7 = 101,260 / 49,600 = 2.04

February 11 = 101,260 / 49,600 = 2.04

February 14 = 90,260 / 38,600 = 2.34

February 18 = 84,960 / 43,900 = 1.94

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.