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bluepanda69Lv1
28 Sep 2019
Menardo Corporation began the month of June with $600,000 ofcurrent assets, a current ratio of 2.5:1, and an acid-test ratio of1.4:1. During the month, it completed the following transactions(the company uses a perpetual inventory system).
June 1 Sold merchandise inventory that cost $150,000 for $240,000cash.
3 Collected $176,000 cash on an account receivable.
5 Purchased $300,000 of merchandise inventory on credit.
7 Borrowed $200,000 cash by giving the bank a 60-day, 8%note.
10 Borrowed $240,000 cahs by signing a long-term securednote.
12 Purchased machinery for $550,000 cash.
15 Declared a $1 per share cash divedend on its 160,000 shares ofoutstanding common stock.
19 Wrote off a $10,000 bad debt against the Allowance for DoubtfulAccounts account.
22 Paid $24,000 cash to settle an account payable.
30 Paid the dividend declared on June 15.
Required
Prepare a table showing the company's (1) current ratio,(2)acid-test ratio, and (3) working capital after each transaction.Round ratios to two decimals.
Menardo Corporation began the month of June with $600,000 ofcurrent assets, a current ratio of 2.5:1, and an acid-test ratio of1.4:1. During the month, it completed the following transactions(the company uses a perpetual inventory system).
June 1 Sold merchandise inventory that cost $150,000 for $240,000cash.
3 Collected $176,000 cash on an account receivable.
5 Purchased $300,000 of merchandise inventory on credit.
7 Borrowed $200,000 cash by giving the bank a 60-day, 8%note.
10 Borrowed $240,000 cahs by signing a long-term securednote.
12 Purchased machinery for $550,000 cash.
15 Declared a $1 per share cash divedend on its 160,000 shares ofoutstanding common stock.
19 Wrote off a $10,000 bad debt against the Allowance for DoubtfulAccounts account.
22 Paid $24,000 cash to settle an account payable.
30 Paid the dividend declared on June 15.
Required
Prepare a table showing the company's (1) current ratio,(2)acid-test ratio, and (3) working capital after each transaction.Round ratios to two decimals.
June 1 Sold merchandise inventory that cost $150,000 for $240,000cash.
3 Collected $176,000 cash on an account receivable.
5 Purchased $300,000 of merchandise inventory on credit.
7 Borrowed $200,000 cash by giving the bank a 60-day, 8%note.
10 Borrowed $240,000 cahs by signing a long-term securednote.
12 Purchased machinery for $550,000 cash.
15 Declared a $1 per share cash divedend on its 160,000 shares ofoutstanding common stock.
19 Wrote off a $10,000 bad debt against the Allowance for DoubtfulAccounts account.
22 Paid $24,000 cash to settle an account payable.
30 Paid the dividend declared on June 15.
Required
Prepare a table showing the company's (1) current ratio,(2)acid-test ratio, and (3) working capital after each transaction.Round ratios to two decimals.
Casey DurganLv2
28 Sep 2019
