Managerial Accounting
3rd Edition
ISBN: 9780077826482
Author: Stacey M Whitecotton Associate Professor, Robert Libby, Fred Phillips Associate Professor
Publisher: McGraw-Hill Education
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Chapter 13, Problem 13E
To determine
Introduction:
To calculate:
The new current ratio after each given transaction stated below:
- $6,000 paid for accounts payable.
- Delivery truck purchased for $10,000 cash.
- $2,000 written off as
bad debts . - $25,000 paid for previously declared dividends.
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Students have asked these similar questions
Good Sports, Incorporated, is a private full-line sporting goods retailer. Assume one of the Good Sports stores reported current assets
of $89,640 and its current ratio was 1.80, and then completed the following transactions: (1) paid $6,600 on accounts payable, (2)
purchased a delivery truck for $13,000 cash, (3) wrote off a bad account receivable for $1,400, and (4) paid previously declared
dividends in the amount of $22,000.
Required:
Compute the updated current ratio after each transaction, by showing the cumulative effects of the transactions in the following table.
Note: Round your answers to 2 decimal places.
Transaction 1
Transaction 2
Transaction 3
Transaction 4
Current
Ratio
Mr. Steve Persian hired Elizabeth to prepare the Statement of Financial Position of his business. To prepare the statement, Elizabeth identified the following assets and liabilities of Mr. Persian:
a. Cash deposited in YKY Bank amounting to P100, 000
b. He has uncollected sales from customers amounting to P50, 000
c. The total amount of merchandise left inside the warehouse is P35, 000
d. Steve paid in advance the rent amounting to P15, 000 for one year.
e. The machineries and equipment amounted to P150, 000
f. He bought the materials from his suppliers amounting to P30, 000 and promised to pay the said amount one month after the end of the year.
g. He paid the contributions of his employees such as SSS, Philhealth and Pag ibig amounting to P6, 500
h. Outstanding balance to Meralco is amounting to P3, 500
i. He acquired a 2 year loan from YKY Bank amounting to P45, 000.
Based on the following transactions, answer the following questions. i. Purchased inventory with a cost of $
24,800 on account. ii. Sales on account to customers totalled $57,800. iii. Payments made to employees for
wages totalled $17,700. iv. Cash collections from customers settling their accounts totalled $41,700. v.
Invoice received from the utility company for $3,800 is due in 30 days. vi. Payments totalling $16,900 were
made to suppliers to settle part of the balance owing to them. vii. Received a deposit of $2,200 from a
customer for goods to be delivered next month. Calculate the revenue,expenses and net income
Chapter 13 Solutions
Managerial Accounting
Ch. 13 - Prob. 1QCh. 13 - Prob. 2QCh. 13 - What is ratio analysis? Why is it useful?
Ch. 13 - What benchmarks are commonly used for interpreting...Ch. 13 - Prob. 5QCh. 13 - Why are some analyses called horizontal and others...Ch. 13 - Slow Cellar’s current ratio increased from 1.2 to...Ch. 13 - From last year to this year. Colossal Company’s...Ch. 13 - From last year to this year, Berry Barn reported...Ch. 13 - Prob. 10Q
Ch. 13 - Prob. 1MCCh. 13 - Prob. 2MCCh. 13 - Prob. 3MCCh. 13 - Prob. 4MCCh. 13 - Prob. 5MCCh. 13 - Prob. 6MCCh. 13 - Prob. 7MCCh. 13 - Prob. 8MCCh. 13 - Prob. 9MCCh. 13 - Prob. 1MECh. 13 - Prob. 2MECh. 13 - Prob. 3MECh. 13 - Prob. 4MECh. 13 - Prob. 5MECh. 13 - Prob. 6MECh. 13 - Prob. 7MECh. 13 - Prob. 8MECh. 13 - Prob. 9MECh. 13 - Prob. 10MECh. 13 - Prob. 11MECh. 13 - Prob. 12MECh. 13 - Prob. 13MECh. 13 - Prob. 14MECh. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - Computing and Interpreting Liquidity Ratios...Ch. 13 - Prob. 9ECh. 13 - Prob. 10ECh. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Analyzing the Impact of Selected Transactions on...Ch. 13 - Prob. 15ECh. 13 - Prob. 1.1GAPCh. 13 - Prob. 1.2GAPCh. 13 - Prob. 2.1GAPCh. 13 - Prob. 2.2GAPCh. 13 - Prob. 2.3GAPCh. 13 - Prob. 2.4GAPCh. 13 - Prob. 2.5GAPCh. 13 - Prob. 2.6GAPCh. 13 - Prob. 2.7GAPCh. 13 - Prob. 2.8GAPCh. 13 - Prob. 3.1GAPCh. 13 - Prob. 3.2GAPCh. 13 - Prob. 3.3GAPCh. 13 - Prob. 4.1GAPCh. 13 - Prob. 4.2GAPCh. 13 - Prob. 4.3GAPCh. 13 - Prob. 5.1GAPCh. 13 - Prob. 5.2GAPCh. 13 - Prob. 5.3GAPCh. 13 - Prob. 5.4GAPCh. 13 - Prob. 6.1GAPCh. 13 - Prob. 6.2GAPCh. 13 - Prob. 7GAPCh. 13 - Prob. 1.1GBPCh. 13 - Prob. 1.2GBPCh. 13 - Prob. 2.1GBPCh. 13 - Prob. 2.2GBPCh. 13 - Prob. 2.3GBPCh. 13 - Prob. 2.4GBPCh. 13 - Prob. 2.5GBPCh. 13 - Prob. 2.6GBPCh. 13 - Prob. 2.7GBPCh. 13 - Prob. 2.8GBPCh. 13 - Prob. 3.1GBPCh. 13 - Prob. 3.2GBPCh. 13 - Prob. 3.3GBPCh. 13 - Prob. 4.1GBPCh. 13 - Prob. 4.2GBPCh. 13 - Prob. 4.3GBPCh. 13 - Prob. 5.1GBPCh. 13 - Prob. 5.2GBPCh. 13 - Prob. 5.3GBPCh. 13 - Prob. 5.4GBPCh. 13 - Prob. 6.1GBPCh. 13 - Prob. 6.2GBPCh. 13 - Prob. 7GBP
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