Problem

Analyzing the Impact of Selected Transactions on the Current RatioIn its most recent annua...

Analyzing the Impact of Selected Transactions on the Current Ratio

In its most recent annual report, Appalachian Beverages reported current assets of $54,000 and a current ratio of 1.80. Assume that the following transactions were completed: (1) purchased merchandise for $6,000 on account, and (2) purchased a delivery truck for $10,000, paying $1,000 cash and signing a two-year promissory note for the balance.

Required:

Compute the updated current ratio, rounded to two decimal places, after each transaction.

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