Current assets totaled 100000 and the current ratio was 15, Ask an Expert

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Current assets totaled $100,000 and the current ratio was 1.5. Assume that the following transactions were completed:
1. paid $6,000 for merchandise purchase on short-term credit
2. purchased a delivery truck for $11,000 cash
3. wrote off a bad account receivable for $3,000 and
4. Paid previously declared dividends in the amount of $28,000

Required: Compute the cumulative current ratio after each transaction.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9975302

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