Problem

Analyzing the Impact of Selected Transactions on the Current RatioCurrent assets totaled $...

Analyzing the Impact of Selected Transactions on the Current Ratio

Current assets totaled $100,000, and the current ratio was 1.5. Assume that the following transactions were completed: (1) paid $6,000 for merchandise purchased on short-term credit, (2) purchased a delivery truck for $11,000 cash, (3) wrote off a bad account receivable for $3,000, and (4) paid previously declared dividends in the amount of $28,000.

Required:

Compute the cumulative current ratio after each transaction.

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