70.2K

Verified Solution

Link Copied!

Can someone please help? I can't figure out Transaction (4) and it is not 1.07 nor is it 1.03.

Good Sports, Inc., is a private full-line sporting goods retailer. Assume one of the Good Sports stores reported current assets of $87,850 and its current ratio was 1.75, and then completed the following transactions: (1) paid $6,100 on accounts payable, (2) purchased a delivery truck for $11,000 cash, (3) wrote off a bad account receivable for $1,800, and (4) paid previously declared dividends in the amount of $23,500. Required: Compute the updated current ratio after each transaction, by showing the cumulative effects of the transactions in the following table. (Round your answers to 2 decimal places.)

Good Sports, Inc., is a private full-line sporting goods retailer. Assume one of the Good Sports stores reported current assets of $87,850 and its current ratio was 1.75, and then completed the following transactions: (1) paid $6,100 on accounts payable, (2) purchased a delivery truck for $11,000 cash, (3) wrote off a bad account receivable for $1,800, and (4) paid previously declared dividends in the amount of $23,500. 14.28 points Required: Compute the updated current ratio after each transaction, by showing the cumulative effects of the transactions in the following table. (Round your answers to 2 decimal places.) X Answer is complete but not entirely correct. Current Ratio 1.85 1.60 Transaction (1) Transaction 2) Transaction (3) Transaction 1.60 1.06

Answer & Explanation Solved by verified expert

See Answer