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Question - Analyzing the Impact of Selected Transactions on the Current Ratio
SportChek is Canada's largest retailer of sporting goods and sports apparel and footwear, with over 130 stores across the country. Assume one of the SportChek stores reported current assets of $81,000 and its current ratio was 1.82. Assume that the following transactions were completed:
1. Paid $6,700 on accounts payable.
2. Purchased a delivery truck for $6,500 cash.
3. Wrote off a bad account receivable for $2,700.
4. Paid previously declared dividends in the amount of $19,000.
Required - Compute the updated current ratio.
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