Tucker Technology has current asset of $350,000 and current ratio of 2.0. Compute Tucker's current ratio after the following 4 transactions are all finished. Borrow $20,000 in a short-term note. Purchase $75,000 inventory on credit. Collect $30,000 of accounts receivable. Pay $20,000 of account payable.

Tucker Technology has current asset of $350,000 and current ratio of 2.0. Compute Tucker's current ratio after the following 4 transactions are all finished. Borrow $20,000 in a short-term note. Purchase $75,000 inventory on credit. Collect $30,000 of accounts receivable. Pay $20,000 of account payable.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 11EB: Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from...

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Question

Tucker Technology has current asset of $350,000 and current ratio of 2.0. Compute Tucker's current ratio after the following 4 transactions are all finished.

Borrow $20,000 in a short-term note.

Purchase $75,000 inventory on credit.

Collect $30,000 of accounts receivable.

Pay $20,000 of account payable.

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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