Wildhorse Aristocrat ncWA borrowed $ from Grow Business Bank to finance the purchase of equipment costing $
and to provide $ in cash. The legal documentation states that the loan matures in years, and the principal is to be paid in
annual instalments of $ The terms of the loan also indicate that WA must maintain a current ratio of and cannot pay
dividends that will reduce retained earnings below $ The yearend statement of financial position, immediately prior to
the bank loan and the purchase of equipment, follows:
Prepare the following statement of financial position assuming the maximum divided is declared and paid.
Current Assets
Noncurrent Assets
Total Assets
$
$
Current Liabilities
Longterm Liabilities
Common Shares
Retained Earnings
Total Liabilities and Shareholder's Equity
$
$
Calculate the current ratio using the updated statement of financial position. Round answer to decimal places, eg
Current ratio
