Your answer is partially correct. Try again. 2019. Feb. 3 Collected accounts rec

Question

Your answer is partially correct. Try again. 2019. Feb. 3 Collected accounts receivable of $13,100. 7 Purchased equipment for $39,000 cash. 11 Paid $2,100 for a 1-year insurance policy. 14 Paid accounts payable of $13,200. 18 Declared cash dividends, $8,900 Additional information: As of February 1, 2019, current assets were $128,800 and current liabilities were $31,900 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 February 1, 2014 Feb. 3 Feb. 7 4.04 4.04 2.82 :1 Feb. 11 2.75:1 Feb. 14 3.98 :1 Feb. 18 2.70 :1

Explanation / Answer

Date Current Assets Current Liabiities Current Ratio Impact on Current Assets Impact on Current Liabilities 01.02.2019 128800 31900 4.04 Given data used Given data used 03.02.2019 128800 31900 4.04 Account Recievable will decrase and Cash will Increase No Impact 07.02.2019 89800 31900 2.82 Cash will Decrease No Impact 11.02.2019 89800 31900 2.82 Prepaid Expense will Increase and Cash will Decrease No Impact 14.02.2019 76600 18700 4.10 Cash will Decrease Account Payable will Decrease 18.02.2019 76600 27600 2.78 No Impact Dividend Payable will Increase

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