Sandhill Incorporated had the following transactions involving current assets and current liabilities during February 2025.
Feb. 3
Collected accounts receivable of $10,700.
7
Purchased equipment for $21,960 cash.
11
Paid $4,100 for a 1-year insurance policy.
14
Paid accounts payable of $13,400.
18
Declared cash dividends of $5,400.
Additional information:
As of February 1, 2025, current assets were $128,100 and current liabilities were $36,600.
Compute the current ratio as of the beginning of the month and after each transaction. (Round answers to 2 decimal places, eg. 1.83:1)
Current ratio as of February 1, 2025
3.5
:1
Feb. 3
3.5
:1
Feb. 7
2.9
:1
Feb. 11
:1
Feb. 14
:1
Feb. 18
:1