On June 30, Year 3, Franklin Company's total current assets were $495,000 and its total current liabilities were $275,000. On July 1, Year 3, Franklin issued a short-term note to a bank for $41,000 cash. Required a. Compute Franklin's working capital before and after issuing the note. b. Compute Franklin's current ratio before and after issuing the note. Note: Round your answers to 2 decimal places. a. Working capital b. Current ratio Before the Transaction After the Transaction

On June 30, Year 3, Franklin Company's total current assets were $495,000 and its total current liabilities were $275,000. On July 1, Year 3, Franklin issued a short-term note to a bank for $41,000 cash. Required a. Compute Franklin's working capital before and after issuing the note. b. Compute Franklin's current ratio before and after issuing the note. Note: Round your answers to 2 decimal places. a. Working capital b. Current ratio Before the Transaction After the Transaction

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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