Reference no: EM131557265

Keener Incorporated had the following transactions occur involving current assets and current liabilities during February 2017.

Feb. 3Accounts receivable of $15,500 are collected.7Equipment is purchased for $27,700 cash.11Paid $3,100 for a 1-year insurance policy.14Accounts payable of $11,000 are paid.18Cash dividends of $5,300 are declared.

Additional information:

1.As of February 1, 2017, current assets were $130,600, and current liabilities were $49,600.2.

As of February 1, 2017, current assets included $14,600 of inventory and $2,500 of prepaid expenses.

(a) Compute the current ratio as of the beginning of the month and after each transaction.

(b) Compute the acid-test ratio as of the beginning of the month and after each transaction.