Current Position Analysis
Effect of Transactions on Current Position Analysis
Data pertaining to the current position of Lucroy Industries Inc. follow:
Cash $435,000
Marketable securities 167,500
Accounts and notes receivable (net) 315,000
Inventories 700,000
Prepaid expenses 44,000
Accounts payable 180,000
Notes payable (short-term) 235,000
Accrued expenses 325,000
Required:
1. Compute (a) the
a. Working capital $fill in the blank
b. Current ratio fill in the blank
c. Quick ratio fill in the blank
2. 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 separatelyand assume that only that transaction affects the data given. Round ratios to one decimal place.
| Transaction | Working Capital | Current Ratio | Quick Ratio |
a. Paid notes payable, $105,000. $ fill in the blank fill in the blank fill in the blank
b. Declared a cash dividend, $155,000. $ fill in the blank fill in the blank fill in the blank
c. Declared a common stock dividend on common stock, $60,000. $ fill in the blank fill in the blank fill in the blank
d. Borrowed cash from bank on a long-term note, $225,000. $ fill in the blank fill in the blank fill in the blank
e. Received cash on account, $135,000. $ fill in the blank fill in the blank fill in the blank
f. Issued additional shares of stock for cash, $640,000. $ fill in the blank fill in the blank fill in the blank
g. Paid cash for prepaid expenses, $7,000. $ fill in the blank fill in the blank fill in the blank
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