Data pertaining to the current position of Lucky Industries are as follows: Cash $ 800,000,Marketable securities 550,000 , Account receivable 450,000, notes receivable 400,000, Inventories 700,000, Prepaid expenses 300,000, Accounts payable 1,200,000, Notes payable (short-term) 700,000 Accrued expenses 100,000 Required: 1. Compute (a) the working capital and (b) the quick ratio from the above data. 2. Compute the working capital 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. Only that ratio be calculated in each case (transaction) which changes due to that transaction> a. Sold marketable securities at no gain or loss, $500,000. b. Paid accounts payable, $287,500. c. Purchased goods on account, $400,000. d. Paid notes payable, $125,000. e. Declared a common stock dividend on common stock, $150,000. f. Received cash on account, $75,000.
Data pertaining to the current position of Lucky Industries are as follows:
Cash $ 800,000,Marketable securities 550,000 , Account receivable 450,000, notes receivable 400,000,
Inventories 700,000, Prepaid expenses 300,000, Accounts payable 1,200,000, Notes payable (short-term) 700,000
Accrued expenses 100,000
Required:
1. Compute (a) the
2. Compute the working capital 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. Only that ratio be calculated in each case (transaction) which changes due to that transaction>
a. Sold marketable securities at no gain or loss, $500,000.
b. Paid accounts payable, $287,500.
c. Purchased goods on account, $400,000.
d. Paid notes payable, $125,000.
e. Declared a common stock dividend on common stock, $150,000.
f. Received cash on account, $75,000.
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