Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 3, Problem 3.16E
Exercise 3.16
LO 6
Effect of transactions on
Required:
- Calculate the firm’s current assets and working capital at April 30.
- Assume that management paid $33,400 of accounts payable on April 29. Calculate the current ratio and working capital at April 30 as if the April 29 payment had not been made. Round your current ratio answer to two decimal places.
- Explain the changes, if any, to working capital and the current ratio that would be caused by the April 29 payment.
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Exercise 14-6A (Algo) Working capital and current ratio LO 14-2
On June 30, Year 3, Perez Company's total current assets were $501,000 and its total current liabilities were $279,500. On July 1 Year
3. Perez issued a short-term note to a bank for $40,200 cash
Required
a. Compute Perez's working capital before and after issuing the note.
b. Compute Perez's current ratio before and after issuing the note. (Round your answers to 2 decimal places.)
Working capital
b. Current ratio
Before the
Transaction
After the
Transaction
Exercise 14-6A (Algo) Working capital and current ratio LO 14-2
On June 30, Year 3, Finch Company's total current assets were $501,000 and its total current liabilities were $273,000. On July 1, Year
3, Finch issued a short-term note to a bank for $38,600 cash.
Required
a. Compute Finch's working capital before and after issuing the note.
b. Compute Finch'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
Exercise 13-7A (Algo) Working capital and current ratio LO 13-2
On June 30, Year 3, Finch Company's total current assets were $503,500 and its total current liabilities were $272,000. On July 1, Year
3, Finch issued a long-term note to a bank for $39,800 cash
Required
a. Compute Finch's working capital before and after issuing the note.
b. Compute Finch's current ratio before and after issuing the note.
Note: Round your answers to 1 decimal place.
a Working capital
b. Current ratio
Before the
transaction
Check my work
After the
transaction
Chapter 3 Solutions
Accounting: What the Numbers Mean
Ch. 3 - Prob. 3.1MECh. 3 - Mini-Exercise 3.2 LO 3 ROI analysis using the...Ch. 3 - Mini-Exercise 3.3 LO 4 Calculate ROE Firm L had...Ch. 3 - Prob. 3.4MECh. 3 - Mini-Exercise 3.5 LO 6 Calculate current...Ch. 3 - Mini-Exercise 3.6 LO 6 Calculate working capital...Ch. 3 - Exercise 3.7 LO 2 Compare investment alternatives...Ch. 3 - Prob. 3.8ECh. 3 - Exercise 3.9 LO 2 Compare investment alternatives...Ch. 3 - Exercise 3.10 LO 2 Compare investment alternatives...
Ch. 3 - Exercise 3.11 LO 3 ROI analysis using the DuPont...Ch. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Exercise 3.15 LO 6 Effect of transactions on...Ch. 3 - Exercise 3.16 LO 6 Effect of transactions on...Ch. 3 - Calculate profitability measures using annual...Ch. 3 - Prob. 3.18PCh. 3 - Problem 3.19 LO 6 Calculate and analyze liquidity...Ch. 3 - Problem 3.20 LO 6 Calculate and analyze liquidity...Ch. 3 - Problem 3.21 LO 3 Applications of ROI using the...Ch. 3 - Prob. 3.22PCh. 3 - Case 3.23 LO 3. 4, 6, 2 Focus company-analysis of...Ch. 3 - Case 3.24 LO 3, 4, 6, 7 Analysis of liquidity' and...
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