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Exercise B A company engaged in the following three independent transactions: Merchandise...

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Accounting

Exercise B A company engaged in the following three independent transactions:

Merchandise purchased on account, $2,400,000.

Machinery purchased for cash, $2,400,000.

Capital stock issued for cash, $2,400,000.

Compute the current ratio after each of these transactions assuming current assets were $3,200,000 and the current ratio was 1:1 before the transactions occurred.

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