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E12-7 Analyzing the Impact of Selected Transactlons on...

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Accounting

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E12-7 Analyzing the Impact of Selected Transactlons on the Current Ratlo LO12-8 Current assets for JC inc. totalled $42,547, and the current ratio was 1,57 . Assume that the following transactions were completed: (1) Purchased merchandise for $5,900 on short-term credit. (2) Purchased a delvery truck for $32,500-paid $5.610 cash and signed a two-yearinterest-bearing note for the balance. Required: 1. Determine without computations if the curcent ratio will increose, decrease, or remain unchanged after each transaction. 2. Compute the current ratio after each transaction. (Round the flnal answers to 2 declmol places.)

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