Data pertaining to the current position of Lucroy IndustriesInc. follow:Cash$420,000Marketable securities177,500...Data pertaining to the...

90.2K

Verified Solution

Question

Accounting

Data pertaining to the current position of Lucroy IndustriesInc. follow:
Cash $420,000
Marketable securities 177,500
Accounts and notes receivable (net) 335,000
Inventories 700,000
Prepaid expenses 40,000
Accounts payable 190,000
Notes payable (short-term) 240,000
Accrued expenses 295,000
Required:
1. Compute (a) the working capital, (b) thecurrent ratio, and (c) the quick ratio. Round ratios to one decimalplace.
2. Compute the working capital, the currentratio, and the quick ratio after each of the following transactionsand record the results in the appropriate columns. Considereach transaction separately and assume that only thattransaction affects the data given. Round ratios to one decimalplace.
Transaction Working Capital Current Ratio Quick Ratio
a. Sold marketable securities at no gain or loss, $60,000. $
b. Paid accounts payable, $130,000. $
c. Purchased goods on account, $135,000. $
d. Paid notes payable, $110,000. $
e. Declared a cash dividend, $150,000. $
f. Declared a common stock dividend on common stock,$55,000. $
g. Borrowed cash from bank on a long-term note, $210,000. $
h. Received cash on account, $125,000. $
i. Issued additional shares of stock for cash, $585,000. $
j. Paid cash for prepaid expenses, $15,000.

Answer & Explanation Solved by verified expert

3.7 Ratings (410 Votes)

Cash 420000 Accounts payable 190000 Marketable securities 177500 Notes payable short term 240000 Accounts and notes receivable net 335000 Accrued expenses 295000 Inventories 700000 Prepaid expenses 40000 Total current assets 1672500 Total current liabilities See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingData pertaining to the current position of Lucroy IndustriesInc. follow:Cash$420,000Marketable securities177,500...Data pertaining to the current position of Lucroy IndustriesInc. follow:Cash$420,000Marketable securities177,500Accounts and notes receivable (net)335,000Inventories700,000Prepaid expenses40,000Accounts payable190,000Notes payable (short-term)240,000Accrued expenses295,000Required:1. Compute (a) the working capital, (b) thecurrent ratio, and (c) the quick ratio. Round ratios to one decimalplace.2. Compute the working capital, the currentratio, and the quick ratio after each of the following transactionsand record the results in the appropriate columns. Considereach transaction separately and assume that only thattransaction affects the data given. Round ratios to one decimalplace.TransactionWorking CapitalCurrent RatioQuick Ratioa. Sold marketable securities at no gain or loss, $60,000.$b. Paid accounts payable, $130,000.$c. Purchased goods on account, $135,000.$d. Paid notes payable, $110,000.$e. Declared a cash dividend, $150,000.$f. Declared a common stock dividend on common stock,$55,000.$g. Borrowed cash from bank on a long-term note, $210,000.$h. Received cash on account, $125,000.$i. Issued additional shares of stock for cash, $585,000.$j. Paid cash for prepaid expenses, $15,000.

Cash	$420,000
Marketable securities	177,500
Accounts and notes receivable (net)	335,000
Inventories	700,000
Prepaid expenses	40,000
Accounts payable	190,000
Notes payable (short-term)	240,000
Accrued expenses	295,000

Transaction	Working Capital	Current Ratio	Quick Ratio
a. Sold marketable securities at no gain or loss, $60,000.	$
b. Paid accounts payable, $130,000.	$
c. Purchased goods on account, $135,000.	$
d. Paid notes payable, $110,000.	$
e. Declared a cash dividend, $150,000.	$
f. Declared a common stock dividend on common stock,$55,000.	$
g. Borrowed cash from bank on a long-term note, $210,000.	$
h. Received cash on account, $125,000.	$
i. Issued additional shares of stock for cash, $585,000.	$
j. Paid cash for prepaid expenses, $15,000.