Alt Ch 12 Assignment - Financial Analysis i
1
Current assets for Clarke Inc. totalled $816,430, the current ratio was 1.90, and the company uses the periodic Inventory system.
Assume that the following transactions were completed:
(1) Sold $21,485 in merchandise on account.
(2) Declared but did not pay dividends of $27,600.
(3) Paid rent in advance in the amount of $19,500.
(4) Paid previously declared dividends in the amount of $27,600.
(5) collected an account receivable for $24,000.
(6) Reclassified $91,300 of long-term debt as a current liability.
Required:
Compute the current ratio after each transaction. (Round the final answers to 2 decimal places.)
